It controlled a small portion of eastern Bitchū Province and was centered around Niwase jin'ya in what is now Kita-ku, Okayama.

In 1600, Togawa Michiyasu, a vassal of Ukita Hideie had a falling out with his overlord and defected to the Eastern Army in the Battle of Sekigahara.

As a result, he was awarded a 29,200 koku domain by Tokugawa Ieyasu and established his seat at Niwase Castle.

Four years later, in 1683, Kuze Shigeyuki from the Sekiyado Domain in Shimōsa Province revived the domain at 50,000 koku but as his status was not that of a "castle-holding daimyō", he set up a jin'ya in the Ni-no-Maru Bailey of former Niwase Castle.

As with most domains in the han system, Niwase Domain consisted of several discontinuous territories calculated to provide the assigned kokudaka, based on periodic cadastral surveys and projected agricultural yields, g.[5][6]