[1] In 1938, the Australian Commonwealth Naval Board (ACNB) identified the need for a general purpose 'local defence vessel' capable of both anti-submarine and mine-warfare duties, while easy to construct and operate.

[6] The need for locally built 'all-rounder' vessels at the start of World War II saw the "Australian Minesweepers" (designated as such to hide their anti-submarine capability, but popularly referred to as "corvettes") approved in September 1939, with 60 constructed during the course of the war: 36 (including Cootamundra) ordered by the RAN, 20 ordered by the British Admiralty but manned and commissioned as RAN vessels, and 4 for the Royal Indian Navy.

[1] She was launched on 3 December 1942 by Lady Davidson, wife of the general manager of the Bank of New South Wales, and commissioned into the RAN on 30 April 1943.

[1] On 15 June, a thirteen-ship convoy heading for Brisbane and escorted by Cootamundra and sister ships Bundaberg, Deloraine, Kalgoorlie, and Warrnambool, was attacked off Smoky Cape.

[11][12] Following the end of the war, Cootamundra was used to transport Allied prisoners-of-war back to Australia, and carry an occupation force to Ambon, before leaving New Guinea waters on 29 September 1945 while towing HMAS Leilani.