[2] The inquiry into the colony of New South Wales conducted by John Bigge from 1819 to 1823 recommended that large grants of land be given to "men of real capital" who would utilise significant levels of convict labour to maintain these estates.

was formed by an Act of the British Parliament and incorporated by royal charter on 1 November 1824 for the cultivation and improvement of waste lands in the colony of New South Wales and other purposes, amongst which was the production of fine merino wool for export to Great Britain.

A group of about 400 well-connected British investors funded the company with a combined capital of one million pounds (made up of ten thousand shares of £100 each).

[5] There were 41 investors based in New South Wales which included some of the wealthiest colonists such as the Macarthur family and Phillip Parker King.

[8] On 3 May 1833 the company received land grants at Newcastle totaling 777 ha (1,920 acres) plus a 31-year monopoly on that town's coal traffic.

In May 1906 the company purchased a half-share in the Aberdare Junction to Cessnock railway for £40,000 which, already owning the other half, placed them in full ownership of the line.

With the post-Great War slump, the company ceased its coal-mining activities in the early 1920s, sold their assets therein, and moved on into the cattle industry.

On 10 December 1831 the Australian Agricultural Company officially opened Australia's first railway,[10] located at the intersection of Brown & Church Streets, Newcastle, New South Wales.

In 1828, 3 years after commencing their 31-year lease, the AACo was accorded a monopolistic position after the company received a grant of 810 ha (2,000 acres) of coal land in the centre of Newcastle.

Further, it was feared that the company may have had control of the entire coal supply in the Colony had the Crown Law Officers responsible for the substitution of a grant for the lease not objected and an alternative agreed upon.

[12] Between 1835 and 1850, the AACo was involved in significant Australian historical law events relating to monopolistic coal mining and private railway access.

Mitchell claimed the construction of the tunnels was to allow access to Burwood Beach in order to build a salt works.

A mine near East Maitland operated by Mr James Brown undercut the AACo's price to supply coal to steamships at Morpeth which led to prosecution.

[13][16] Also in 1850, the coal mining monopoly ended with the peal of the Metallic Ores Act as promised by Governor Gipps, allowing copper to be brought into NSW duty-free.

Together the properties occupy an area of 4,046 square kilometres (1,562 sq mi) and have a maximum carrying capacity of 20,000 head of cattle.