A series of football matches under rugby rules was held in Western Australia in 1881, and led to the creation of three rugby clubs: Perth, Rovers and Fremantle. In 1885 all the clubs decided to switch their allegiance to the Australian Rules style of football.

A rugby competition started in Perth in 1893 with the first recorded match being between Swans and Pirates. Other teams in the early years included Fremantle, Zingari, Midland, Sydneys and Pioneers. The competition lapsed between 1901 and 1905. The Perth Rugby Club started its existence in 1906 and won premierships in 1907 and 1910. That was the final year of the competition and rugby was not played again in Western Australia until 1928.

The rugby competition reformed in 1928, with Wallabies, Rangers, Wanderers, Nomads and Fremantle teams participating. In 1929 many of the teams changed names. Rangers became Perth, Nomads became Cottesloe-Claremont, Wanderers became Guildford and Wallabies became Northern Suburbs. Fremantle and University also joined the competition. Perth's headquarters were the Grosvenor Hotel, Hay St, Perth, they played on Langley Park and trained at Wellington Square, Wellington St, East Perth.

All W.A. clubs went into recess in 1941 and no comeptition was played during the rest of World War II, but began again in 1945 with Perth RUFC fielding one team, ten senior players having given their lives in the war.

Two teams were playing for the club in 1946, and three teams from 1950.

In 1951 the club amalgamated with the Northern Suburbs club and changed its name to Perth Suburbs RUFC following the introduction of the rugby league competition, which almost resulted in the club closing through lack of numbers. In 1955 a colts team (under 19) was added to the club.

In 1975 the name of the club was changed to its present form of Perth-Bayswater RUFC with the move to Morley Reserve in the City of Bayswater council area, and a fourth team was added to the club. The clubrooms at Morley Reserve were opened in 1977.

First Grade captain Mark Tuhakaraina holds the 1996 Premiership Trophy aloft after the Grand Final.	First Grade captain Ash Murphy accepts the 2007 premiership trophy after winning the grand final.

The club won first grade premierships in 1932, 1936, 1937, 1961, 1962, 1969, 1996 and 2007. It won second grade premierships in 1957, 1965, 1977, 1978, 1990 and 1991; and third grade premierships in 1957 and 1995. A colts premiership was won in 1989. Club Championships were won in 1959, 1962, 1982, 1983, 1989, 1990 and 1995.

Perth players to win the P.G.Hampshire Award (state best and fairest) include Barry Silbert (1960), Stan McKenna (1962), Judge (1965), Rod Cann (1968 and 1969), McCurragh (1970), Hamish Pryor (1977), Dave Brown (1989) and Conrad Kovacs (1996).

The record score for an Australian club player was set by WA State centre, Rod Cann of Perth-Bayswater, who scored 302 points in 1969, with 18 tries, 53 penalties, 43 conversions and 1 drop goal.