In 1905, the provinces of Alberta and Saskatchewan were created from the heavily populated areas of the North-West Territories.
With almost no voting population in the remaining parts of the North-West Territories, its political parties disbanded when the Government of Canada returned to its former policy of appointing members of the Territories' legislative assembly The assembly went back to the consensus model of government.
The consensus model of government that had been used prior to the election of 1898 had its influences in the party system: Conservative leader and Government Leader Frederick W. A. G. Haultain appointed two Liberals to his cabinet and one Conservative, even though they formed the opposition, from 1898 to 1905.
The Calgary Herald attacked the Territorial Liberals in October 1902, after they held a convention in which they failed to adopt policies towards the creation of a provincial government.
Robert Brett was the Leader of the party from the beginning until, he made a surprise move to drop out of the race just days before the election of 1902.