The success of the Crosswell's Brewery works side in the 1886–87 FA Cup, and the number of people from the town who went to West Bromwich Albion for the latter's home games, led businessmen in Oldbury to consider setting up a side for the town.

There were two separate groups; one led by a Mr Morton of the Bell Hotel, which proposed Brooke Robinson, Member of Parliament for Dudley, as the club president,[1] and one led by a Mr Garbett, who proposed renting a ground in Low Town from the Chance Brothers firm.

The latter organization won out and Benjamin Hingley, MP for Oldbury's constituency of North Worcestershire, accepted a role as President.

In the first round the club was drawn against Aston Villa, and a 4–0 home defeat against the Cup holders was not disgraceful in the circumstances; indeed Town kept the score to two until the last ten minutes, and had a goal disallowed.

At the close of the season however the club lost captain Bradbury to Birmingham St George's.