Ms McLaughlin said the closure would be a huge blow to the arts sector in Derry.
The 372-capacity theatre, which opened in 2001, also has an art gallery space, full-screen cinema, conference rooms and a cafe area.
The converted factory building has hosted a range of arts and entertainment programmes, from comedians, concerts to plays.
Said the Foyle MLA: “It is really disappointing to hear of the closure of the Waterside Theatre and Arts Centre from the end of June.
“In 2013, the people of Derry were promised a strong legacy from the City of Culture yet more than ten years on, I think it would be hard for anyone to say with confidence that this has been achieved.
“Too often our arts and culture venues have been left to fend for themselves facing drastic cuts from the Arts Council.
“Investing in our arts and culture is critical to local regeneration and to the future economic development of this city and it needs the full support of government. The truth is that we should be investing more in our arts sector, not less, particularly in communities that are most deprived.
“In light of this announcement, I think it is incumbent on the Minister for Communities to review the current funding provided by his department to the arts sector in our city to ensure it is able to thrive, including whether further funding may be available to the Waterside Theatre and Arts Centre, given the contribution it has made to the cultural life of the city.“I would further urge the Minister to ensure that there is a specific focus on Derry and the North West in the planned new Culture, Arts and Heritage Strategy and to ensure regional balance in the funding provided by his department.”
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