In real life, the Avonlea Foundling Home is actually a Bed and Breakfast.  The Hill and Dale Manor lies on four acres of land surrounded by ravines in the historic downtown of Port Hope, Ontario.

The originally symmetrical house was built in the 1850’s for Henry Howard Meredith, who made his money from real estate developments.  Meredith then sold the house in 1871 for $15,000 and from then on its subsequent owners added quite a few features.

The Covert family added a gabled wing, while George H. Ralston built bay windows, extra entrances and a verandah.  The Ralston family owned the property for most of the 20th century until it was taken over by the Hendersons – the current owners and operators of the bed and breakfast.

In Road to Avonlea, the production team had to show a progression from the Foundling Home’s derelict state to its grand revival.  Viewers may also recognize it as the home of Margaret Lloyd in Season One’s “Old Lady Lloyd.”  In the seventh season, the whole town worked together to rebuild the house to its impressive state.

Source:  http://www.hillanddalemanor.com/