[5][3] She was the third of five children in the family, and her sisters were Joan, artist and educator Frances Derham, and Claire, who became the first female engineering student at the University of Melbourne.

[7] She grew up in a bush house in Narbethong, a small town in the rural suburbs of Melbourne, where she learned to hunt, fish, horse ride, and had her first contact with driving.

"[5] At the age of 18, Anderson began working part-time as a clerical worker, and made extra money by shuttling weekend tour groups to the Dandenong Ranges.

A year later, she acquired a block in Cotham Road, constructed a brick garage, and founded the Alice Anderson Motor Service enterprise.

[3] The services offered included vehicle repair, chauffeuring with garage-owned cars, interstate touring trips, driving classes, and petrol stations.

[19][20] As an advocate for women in garage work, and female independence, she published press articles and contributed to motoring columns in Woman's World.

"[24] In March 2020, Anderson was inducted into the Victorian Honour Roll of Women following nomination by members of the Friends of Boroondara (Kew) cemetery.

[25] In 2023, Garage Girls, a stage performance based on the life of Anderson and the women she employed, had a season at La Mama Theatre in Melbourne.