It is said that the Tenterfield Terrier breed originated from dogs that accompanied Australia's first European settlers who sailed from Portsmouth in the south of England.

These dogs were pest and vermin killers, with the smallest of them selected to play that role on the European ships, thus leading to their arrival in Australia.

It is also said that the smallest puppies from the litters of Fox Terriers were sometimes domestically selected such as for manouvreability in a hunting role, and even at times crossed with other small breeds to achieve a smaller size.

[1] By the late 19th century a dog type known as the Miniature Fox Terrier (known colloquially as "Mini Foxies") was well established in rural Australia as a vermin killer and family companion.

Additionally, the owner of the town's saddlery a man named George Woolnough, was immortalized by his grandson entertainer Peter Allen as the "Tenterfield Saddler".