Asbestos has been discovered at Timaru's Theatre Royal, which is undergoing a multi-million-dollar redevelopment. The Timaru District Council said the ground floor auditorium and stagehouse have been closed and isolated after testing last week found asbestos in plaster in the auditorium. The council is redeveloping the historic Theatre Royal and constructing a new museum on an adjacent site at a cost of $25.8 million. "The asbestos within the plasterwork is inert and harmless while it remains encapsulated. We are undertaking checks and measures to ensure that all areas with potential asbestos are properly sealed and encapsulated before any further work proceeds," he said.