[1] In early 1886 both James Service and Graham Berry had resigned as the Conservative and Liberal leaders in the coalition government.

The Irrigation Act of 1886 led to the possibility of the development of major works, prevented the further private acquisition of riparian rights and declared all surface water in Victoria to be the property of the Crown.

[7] After the years of rising prosperity prior to the 1886 election, Victoria's favourable reputation in London led to an influx of capital and increased immigration.

Melbourne's population expanded, leading to pressures for land and housing and the extension of the suburban railway network.

The land and building boom was encouraged by the government and compounded by Gillies' overconfidence and financial incompetence in his role as Premier and Treasurer.