A single aircraft, the Gloster IVB, competed in the Schneider Trophy 1927 race, however, it was forced to retired part way through due to the imminent failure of the propeller shaft.

To this end, the Air Ministry placed orders for the design and limited production of high speed floatplanes with numerous British aircraft manufacturers, including Gloster, Supermarine (who would produce the S.5) and Shorts (who developed the Crusader).

[5] Gloster's chief designer, Henry Folland, decided to persist with the biplane configuration following an extensive study of the matter, centred around three key areas: speed, wing rigidity, and application to service requirements.

Efforts were made to minimise these areas and revise their lines to sharpen their form; this work reportedly yielded a 45 percent reduction in comparison to that of the Gloster III that had participated in the 1925 race.

These reductions, in combination with other improvements such as increased engine power and propeller efficiency, allegedly boosted the aircraft's maximum speed potential by 70 MPH.

Specifically, the skin being built up upon the formers and secured to the framework of multiple spars, the leading and trailing edges, and intermediate contour pieces, the latter being used in place of traditional ribs.

[13] The wings proved to be particularly strong, being capable of supporting a load equivalent to 13 times the weight of the seaplane before indicators of failure would present; this was considered particularly conducive for undertaking high rates of acceleration.

A novel shock absorbing feature, comprising strategically placed rubber discs, was incorporated so that the landing wires would not go slack or vibrate at moments of low loading.

The Gloster IVB was finally chosen to compete with the two S.5s in the race, the Crusader having crashed due to having its control cables crossed on re-assembly.

[23] Prior to its withdrawal, the Gloster IV had demonstrated promising performance, having achieved faster lap speeds than the directly driven Supermarine S.5, although not the geared model of the same aircraft.

[24] Following the race, the Gloster IVA and IVB were returned to the United Kingdom, where they were modified to improve the pilot's view by raising the upper wing and used as high speed trainers.