The rare Japanese vintage tea set made from the finest porcelain and owned by the original owner of the Hydro Majestic Hotel was donated to current hotel owners Escarpment Group by Lithgow City Councillor Maree Statham.

Gifted by Foy to Sam Ewen who managed his farm Newbridge in NSW, the tea set is beautifully hand painted with gold trim and embossed with a scene of geisha women from the early 1920s Showa Period.

Escarpment Group guest services manager Meagan Lervasi thanked Cr Statham for the "incredibly generous" donation.

"The Hydro Majestic holds almost legendary status in hotel, indeed national history and we never take for granted the far-reaching connections the Hydro Majestic and Mark Foy have had throughout the generations," she said.

"We are so grateful to Cr Statham for parting with such a beautiful piece of memorabilia so it can be shared with many more."

Cr Statham, a long-time Lithgow Councillor, said the tea set was gifted to her by her cousin Gwen Ewen, the daughter of Sam Ewen.

"For nearly two decades once a month I would drive my grandfather, Mr William Lowe (Bill) to visit Sam and his wife Ellen, who was my grandfather's sister," Cr Statham said.

"My grandfather was very close to Aunty Ellen, and she was always delighted to see us and mentioned regularly that she was so grateful that I would drive my grandfather to Newbridge as my grandfather did not drive.

"After the death of Aunty Ellen I was presented with the tea set by her daughter Gwen. I value the significance of this wonderful gesture and have cared for the tea set for 20 years, but now feel it most appropriate to gift this valued unusual tea set back to the Hydro Majestic."

Cr Statham said she wanted the tea set to be in a place she knew it was going to be safe.

"I thought about it long and hard for six months, and I have a really good, strong friendship with the current owners of the Hydro who really appreciate the donation," she said.

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"I've been assured it will be protected behind glass at the Hydro, and on display for the public."

Cr Statham said her family knows that she has donated the vintage tea set.

"If I ever moved again and it got damaged that would cause me great distress," she said.

Cr Statham also said she wouldn't want anything to happen to the tea set if she was to pass away.

"I don't want it to get sold," she said.

"It's not about the money, because I have had the opportunity to sell it, but I want it to be admired by the public.

"It is very valuable and very, very rare and needs to be on show, it's not a piece you would bring out at a tea party because it is quite unusual."

The tea set is on display, along with numerous other memorabilia in the Hydro Majestic Pavilion, Great Western Highway, Medlow Bath, from 9am to 5pm daily.

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