It was conducted in single member constituencies with compulsory preferential voting and was held on boundaries created at a 1952 redistribution.

Cahill, who was commonly known as "old smoothie" had been a popular premier and had shown some flair in leadership by announcing a design competition for the Sydney Opera House in September 1955.

[1] Cahill's attempts at unity were assisted by the state's Catholic hierarchy who were less politically involved than their Victorian counterparts under Daniel Mannix.

The opposition campaigned on the government's broken promises and uncompleted public works as well as resentment against compulsory unionism and the implementation of the Cumberland Plan, which reserved a large area of the Sydney Basin from development.

Labor losses were largely confined to the marginal or usually conservative seats that it had unexpectedly won at the 1953 election including Armidale, Coogee, Drummoyne, Georges River, Parramatta, and Sutherland.

His main opponent and the winner of the seat was the independent, Frank Purdue who was prominent in local Government and the popular Lord Mayor of Newcastle.