The court came into existence in May 2005 and was the result of the amalgamation of the Court of Petty Sessions of Western Australia, Small Claims Tribunal of Western Australia, and the Local Court of Western Australia.

The amalgamation of the three courts followed from recommendations made by the Law Reform Commission of Western Australia.

The amalgamation also occurred at a time when changes were made to the appointments of justices of the peace, appointment of magistrates and civil procedure in the state by widening the options available for enforcing bad debts.

The court also deals with cases under the Restraining Orders Act 1997 (WA), the Dividing fences act, Disposal of uncollected goods and extraordinary drivers licence applications.

The Governor of Western Australia can appoint magistrates to the court.