It was hosted by the Cruising Yacht Club of Australia based in Sydney, New South Wales.
The race was initially planned to be a cruise planned by Peter Luke, Jack Earl and the Walker brothers who had formed a club for those who enjoyed cruising as opposed to racing.
[1][2][3] The plan was changed, however, when a visiting British Royal Navy Officer, Captain John Illingworth, famously suggested, "Why don't we make a race of it?
"[4][5] The inaugural race,[6] like all those that have followed, began on Sydney Harbour, at noon on Boxing Day (26 December), before heading south for 630 nautical miles (1,170 km) through the Tasman Sea, past Bass Strait, into Storm Bay and up the Derwent River, to cross the finish line in Hobart.
Illingworth's own vessel, Rani, won the inaugural race in a time of 6 days, 14 hours and 22 minutes.