It was formed at the Isle of Portland in 1959 and later became part of the Admiralty Research Agency (ARE) in 1984.

The North site, located at Portland's Naval Base, was formerly the HM Underwater Detection Establishment;[4] the South site, located at Southwell, was formerly the Admiralty Gunnery Establishment.

The Torpedo Experimental Establishment took over the facilities and staff of the former Royal Naval Torpedo Depot Weymouth at Bincleaves (the closure of which coincided with the Establishment's move from Scotland);[5] this site became known as AUWE(B).

[6] The work carried out at Portland had the highest security classification during the Cold War.

[1] With the end of the Cold War in 1991, both Portland's naval base and the two research establishments closed in 1995.