The VDC was established in July 1940 by the Returned and Services League of Australia (RSL) and was initially composed of ex-servicemen who had served in World War I.

[1] The government took over control of the VDC in May 1941, and gave the organisation the role of training for guerrilla warfare, collecting local intelligence and providing static defence of each unit's home area.

[1] General Harry Chauvel, who had retired in 1930, was recalled to duty in 1940 and appointed Inspector-General of the VDC.

Membership was open to men aged between 18 and 60, including those working in reserved occupations.

[1] Media related to Volunteer Defence Corps (Australia) at Wikimedia Commons