In 1949, the Gascoignes' third child, daughter Hester, was born. Like many Observatory personnel, the Gascoignes lived in a staff residence on Mount Stromlo, which was a long difficult trip away from Canberra. It was cold and lonely, particularly for Rosalie, but they enjoyed the outdoors, and the landscape inspired Rosalie's creativity and later her artistic career. In 1960 they relocated to Deakin in suburban Canberra, and in the late 1960s they moved to another suburb, Pearce.
In 1957, administrative responsibility for the Commonwealth Observatory was transferred from the Australian Government's Department of the Interior to the Australian National University (ANU), a move supported by both its director, Richard Woolley, and Gascoigne. This was an era of significant change at Mount Stromlo: in January 1956 Woolley had resigned as director of Mount Stromlo to take up a position as Astronomer Royal and director of the Royal Observatory Greenwich. He was replaced by Bart Bok, whom Gascoigne liked and under whose directorship he played a significant role. Also in 1957, the Mount Stromlo team began searching for a new field observatory site, due to the increased light pollution from Canberra's growth. The search was vigorously promoted by Bok, and after an examination of 20 possible locations, two were shortlisted: Mount Bingar, near Griffith, New South Wales, and Siding Spring, near Coonabarabran, New South Wales. Gascoigne was one of a group of scientists who visited Siding Spring Mountain as part of the search, and he was one of those who advocated this choice:
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