NAO is one of the oldest observatories in Eastern Europe. It was founded in 1821 as a Naval Observatory. In 1912 it became Nikolaev department of Pulkovo Astronomical Observatory. In 1992 it became an independent research institution in Ukraine, and it has become Research Institute since 2002. At present the Observatory is subordinated to the State Committee for Science, Innovation and Information.
The Observatory is located in the central part of Nikolaev at an altitude of 52m above sea level. The geographic coordinates are longitude 31o58' E, and latitude 46o58' N.