Fraser Donald, chairman of the combined Fell and Heritage Museum committee, said joining the two would not only boost foot traffic for the Heritage Museum, but provide a more involved "historical experience" for visiting enthusiasts.
"It makes sense," Mr Donald said. "Featherston doesn't have your standard town history -- between the railways and the military camps, we've got three unique stories to tell. It seems like such an obvious thing to have them in one place."
Heritage Museum president Phil Dittmer spoke of Featherston's colourful past in his address at the signing event.
He said the town was "the last place to call home" for over 60,000 troops at the training camp before World War I, and came under "the international spotlight" with the Japanese POW camp, and the deaths of 48 prisoners during a strike in World War II.
"Featherston may seem to be a sleepy little town with not that much going for it.
"But it has quite possibly the most interesting history of all the towns in Wairarapa.
"We believe the combining of the museums will have a greater impact on the visitor experience by covering a wider range of interests."
Mr Dittmer also mentioned several proposed upgrades for the Heritage Museum, for which funding can be secured with the promise of higher visitor numbers.
Work will shortly begin on upgrading the building's insulation, and the committee is now seeking funds to further revamp the interior, which will include a recreation of a building from the Military Training Camp.
Finally, the committee plans to build a covered walkway between the two museum sites.
The interior design work -- which will include new exhibition panels and an ancestry database -- will be led by Porirua-based consultant Barry O'Donnell, who is also writing a book on the Rimutaka Incline.
Mayor Mrs Staples praised both museum committees for "sharing resources".
"It's a sign of the times -- organisations doing things together to remain sustainable."