The orphanage is where Annie (character) lives before she lives with Oliver Warbucks. This also where The Orphans live and Miss Hannigan. The orphanage has child labor because everyone except Miss Hannigan has to work from when they get up till when they're asleep. When Grace Farrell visits one day. Miss Hannigan didn't want Annie to stay with Oliver for a week. As his relationship grows with Annie. He decides to adopt her and Annie now lives with him. In the musical he adopts all orphans.