This agency was formed on 10 October 1924 as a part of the implementation of the Montague Chelmsford report on constitutional reforms.

It was formed by merging the areas under the erstwhile Kathiawar, Cutch (covering only Kutch state) and Palanpur agencies.

Some 163 Talukas and Estates were included in this Agency: these were mostly petty (e)states, some no larger than a town or village.

Watson became its first Agent to the Governor General of British India (AGG).

On 5 November 1944 it was merged with the Baroda and Gujarat States Agency to form the larger Baroda, Western India and Gujarat States Agency.