Originally the British Royal Navy provided total security for the colony of New Zealand, but in 1846 the settlers bought a gunboat.

The Waikato Flotilla operated from 1860, and at the same time a Naval Artillery Volunteer corps was established to provide harbour defence.

In 1884 the government purchased four spar torpedo boats, and starting in 1887 it funded ships of the Australasian Auxiliary Squadron.

Though this was opposed by the First Lord of the Admiralty, Winston Churchill, the Naval Defence Act of 1913 brought the division into existence.

The light cruiser HMS Philomel was purchased from the Royal Navy to function as a training ship.