The decision to initiate an Eisteddfod in the Upper Hunter arose from the Muswellbrook Shire Council Social Development Committee in 1990. A public meeting was called for and advertised in the Muswellbrook Chronicle. The aim was to form a committee to "run the 1992 Muswellbrook Shire Eisteddfod". On 15th April 1991 the meeting was held at the Muswellbrook Shire Administration Centre with 13 members in attendance. Following this, the first committee meeting was held Tuesday 30th April 1991.
Only three Divisions were formed initially with Dance, Vocal & Instrumental, and School Choirs & Bands being run over the course of a week, from 14th to 18th April 1992. Apart from the funds left from the events of Youth Week, support in the first year came from Muswellbrook Shire Council, Scone Arts Council, McDonalds, and Drayton Coal along with several small donations from members of the public.
By 1998, it was believed that the committee had "now established a well run and highly regarded event, one that competitors and public now look for and anticipate with enthusiasm and pleasure".
In 2019, the Eisteddfod will celebrate its 28th consecutive year of operation.