There were many winners on the night, with the announcement of the art prize winners and a new gallery for the community.

Tasmanian artist Neil Haddon received the highest accolade and was announced the winner of the 2009 Whyalla Art Prize.

His $25,000 award-winning piece Portrait with Paperchains was created with enamel and oil paint on aluminium.

Haddon was inspired by singer Thom Yorke's lyrics: "the more you try to erase me, the more I appear."

Major Jim Pollock said the city is certainly thrilled to have his work added to its collection.

Judges Peter Walker, Steven Carson and Libby Raupach deliberated all day to narrow it down to one winner.

Mr Walker said the high quality produced made the decision hard for the judges.

Emerging young South Australian visual artist Kate Gagliardi won Country Arts SA Young SA Artist for her mixed media piece on wood, I Do What I Want.

Room five of Lincoln Gardens Primary School was announced as OneSteel Young SA Artist under 17 winners for their lino print on paper on Eyre Peninsula Biodiversity.

OneSteel and Country Arts SA were commended for their ongoing commitment to young South Australian artists.

The art prize has grown since it was established in 1972.

"I am pleased to say that over the years, the prize has continued to flourish, firmly establishing itself as one of the most significant visual arts prizes not only in South Australia but nationally," Mr Pollock said.

Mr Pollock said the prize has clearly outgrown the current setting and for many years it was apparent to anyone looking that Whyalla needed a purpose built gallery space.

"I am certainly hopeful that the 2011 Whyalla Art Prize announcement will be made from the Whyalla Art Gallery."