[1][3][2] The Gaucho Sheepdog was discovered in Rio Grande do Sul, Brazil by shepherds in search of dogs with better herding abilities.

The older and more widespread theory argues that the Gaucho Sheepdog descends from herding dogs (unspecific breed) in Rio Grande do Sul.

The Border Collie likely arrived in the municipality of Uruguaiana in Rio Grande do Sul in the 1950s, along with a herd of Australian Merino sheep.

In addition to arriving with their European owners, this breed was also imported by farmers who wanted to modernize herd management techniques on their ranches.

Gaucho Sheepdogs are seen as good watchdog candidates since they are alert to strange noises, although they seldom attack intruders.