In October 1998, local Ukrainian steel industry businessman Viktor Levada founded FC Levadia in Tallinn's majority Russian-speaking suburb Maardu, and the club quickly earned promotion to the top division.

Contrary to Flora, Levadia began playing with mostly local Russian players, laying the groundwork for a cultural rivalry between the clubs.

"[6] Despite being the league newcomers, Levadia were considered as one of the main title contenders against the reigning champions Flora already before the start of the 1999 season.

[7] The first match between the two teams took place on 28 April 1999 in Maardu, when hosts Levadia drew 1–1 with Flora in the Estonian Cup semi-final first leg.

[13] The two clubs also share Sportland Arena, the artificial turf stadium used during winter, which has hosted around 20 league derby matches.