This agency was established as a successor to the Canberra Government Hospital in 1935, when a Canberra Community Hospital Board, at first partly and then (by Ordinance No 20 of 1938) wholly elected by the Canberra community, was created to oversee the running of the Hospital. The Board's name was changed (by Ordinance No 31 of 1967) to the Canberra Community Hospital Management Board, consisting of two members elected by and from the Advisory Council and three members appointed by the Minister. During its earlier years the Hospital was partly financed by a tax on Canberra wage-earners.

The Hospital was moved in February 1943 from temporary accommodation into a permanent building which it occupied until the closure of the Hospital in November 1991.

From 1968 it was known as Canberra Hospital and following a visit by the Governor-General on 19 July 1979 it was re-named Royal Canberra Hospital.

In 1971 the name of the Canberra Community Hospital was changed (by Ordinance No 33 of 1971) to the Canberra Hospital.

In April 1973 The Canberra Hospital Management Board became The Canberra Hospitals Management Board to include the recently established Woden Valley Hospital (by ACT Ordinance No 12 of 1973).

Overall responsibility for conduct of the hospital was given to the Capital Territory Health Commission, by Health Commission Ordinance 1975. Under this ordinance a Hospital Administrator was to be appointed, responsible and subject to the general direction of the Commission for the conduct of the hospital, with the Chief Medical Administrator being responsible, subject again to the general direction of the Commission, for the clinical administration of the hospital.