The story is set in the 1860s and focuses on the rivalry between two neighbouring sheep stations in rural Australia, "Enderby" and "Waratah".

The play was originally produced by William Anderson and made its debut at the Theatre Royal in Melbourne on 9 February 1907, starring both Bailey and Duggan in supporting roles.

Bailey and Duggan received a per performance royalty for their writing rather than selling the play outright, which was a first for Australian playwrights.

The producers later claimed during this time it grossed £70,000 and was seen by an estimated 1.5 million people, making it the most popular Australian melodrama to date.

Edward William O'Sullivan accused the writers of The Squatter's Daughter of borrowing the story from his play Cooee, or Wild Days in the Australian Bush.