What is the importance of the Lily Theatre in the novel, City of Girls?

The Lily Theater symbolizes the importance of art and creativity in particular communities. Both Olive and Aunt Peg are happy to keep the theater up and running to cater to their (mostly uneducated) audience, and it is the Lily that serves as a safe haven for a number of otherwise "misfit" people who would otherwise not fit in. This includes people like Vivian, new to New York City, but also the sexually free showgirls, homosexual performers, and eccentric people like Edna Parker Watson.