At the end of the 1946 campaign, it was Bathurst that was crowned Western Challenge Cup premiers after finishing ahead of Lithgow, Orange and Oberon in the four-team group. The team's 7-0 win against Oberon in the final match of the round-robin competition in August at the Bathurst Sportsground saw the team finish the campaign undefeated.

Group 10 would meet two months later - it would regularly meet throughout the season, so this wasn't unusual - but a proposition by Group secretary Harley Brazil would see a radical change.

Reported in the National Advocate on Monday, October 14, Brazil had submitted a "scheme" for an inter-town club competition, which would kick-off in 1947. While the proposal would be discussed at a later date, Brazil's idea was to see the leading eight teams in the Group - Bathurst Railway, Bathurst Waratahs, Lithgow Small Arms Factory, Lithgow Western Suburbs, Oberon, Orange Our Boys, Orange Waratahs and Portland - participate in the competition.

However, not everyone accepted the move by Brazil. The Orange delegates at the meeting had a preference for an inter-district competition rather than an inter-town club one, but this proposal was knocked down.

It was agreed at the meeting that premiers would be awarded £100 and the Western Challenge Cup, while the runners-up would receive £40 and the Mockler Cup. Other recommendations included a home-and-away schedule and that all finals would be played at neutral venues.

The Lithgow Mercury would later report in February 1947 that the 'Brazil plan' - as it had been nicknamed by the press - would be adopted, however, there was "vigorous opposition" from both the Bathurst and Orange Rugby Leagues. Those two representatives, including leagues from Lithgow, Mudgee, Oberon, Blayney and Portland would debate over three proposals for several hours. The other two reported in the Lithgow Mercury on February 26, 1947 included:

Ultimately it was the 'Brazil plan' that was adopted by 10 votes to eight. It was quickly followed by opposition from Orange and Bathurst. Mr T. Menchin of Orange claimed the "better players of other teams would tend to transfer to the clubs which would be participating in the scheme", thus affecting the clubs not in the 'Brazil plan'. E. Ross of Bathurst described the 'Brazil plan' as being "dangerous" and said Bathurst would withdraw from the new competition.

Issues continued and by Group 10's annual general meeting on March 16, tensions reached boiling point between Orange and Bathurst and the other leagues. According to the Lithgow Mercury, Bathurst and Orange were granted permission to conduct their own competitions, independent of the new inter-town club tournament.

H. A. Aitken, a delegate from Lithgow, believed "Bathurst and Orange leagues should be expelled". According to the Bathurst Times, other exchanges that were thrown around included "dictatorship" and "red herrings across the trail".

Brazil's plan for a new inter-town club competition was thrown into turmoil, with only four teams nominating, well below the secretary's eight-team dream. At the Group's meeting on April 7, only Lithgow Small Arms Factory, Lithgow Western Suburbs, Oberon Tigers and Portland Colts had put their hands up for the new competition.

The first ever games in Group 10 had been locked in for Sunday, April 13. Wests would play Oberon in Lithgow, while Portland would host Factory. Both games would kick-off at 3.15pm, with curtain-raisers the local Lithgow first grade competition games.

Match reports in the Lithgow Mercury indicate Wests overcame the Tigers 17-3. C. Hallam scored the first try for Wests, which may have been the first ever try scored in the competition. In the other match, Portland downed Factory 14-7.

The following round Factory overcame Wests 16-8, while Oberon claimed its first win over Portland 12-5, meaning each club had one won game each after two rounds. Oberon's win was its only for the season, but the battle for the minor premiership was keenly contested between Factory, Portland and Wests.

With two weeks to go, Wests held the lead over Factory and Portland by just two points. But in the penultimate round of the competition, Factory were too good for Wests 18-8. Wests, Portland and Factory all had a share of first heading into the final round. Portland won 4-0 against Wests and Factory oversaw Tigers 9-5, meaning Colts and Factory topped the ladder on 15 points.

A play-off for the minor premiership would be needed and Portland's Kremer Park would be the host for the crucial match and it was the Colts claiming the minor premiership with a 5-2 win.

The two teams would clash a week later in the final and if Portland won, they would be crowned premiers. However, if Colts lost, it could exercise its right of challenge under the rules of the time. And it was Factory that reversed the result from the previous weekend, shutting out the minor premiers' attack 11-0.

There would be no second chances now, with the winner taking the premiership for real. On September 7, 1947, Lithgow Showground would host the first ever Group 10 club team grand final. The teams listed in the Lithgow Mercury for the grand final were:

There were occasional flashes of brilliance scattered among rugged defensive efforts. Portland pulled out to a quick 4-0 lead thanks to the boot of Taylor, who kicked a penalty goal and field goal. Holt pulled things back for Factory, a penalty having the Lithgow side down by just two points.

While Factory looked to be closing in on the lead, it was Portland that scored the first try. Clarke punted ahead from around halfway, before regathering possession. He whipped the ball out to Gallagher, who took it in his stride, outpacing Leary and Holt to score in the corner. Taylor failed to convert but Portland had a 7-2 lead.

Factory was back in the game after Hauville evaded four Portland defenders to score after a 40 metre run from centre-field. The conversion was missed but Factory had closed the deficit to just two points.

And with only minutes before half-time, Holt beat his opposing fullback to the ball, kicked ahead and gathered the ball just near the line to score. He failed to convert again, but Factory had an 8-7 lead at the interval.

Holt would further extend Factory's lead, after he attempted a penalty goal just behind halfway. The Lithgow Mercury described the effort: "Few spectators expected him to be successful, but with a powerful kick he raised the flags".

Leary put the game almost out of doubt, his field goal putting Factory up 12-7. From there, the Lithgow side maintained its pressure and pinned Portland to their own line for some time.

The winning try would eventually came from Simpson, the try being converted.

Factory won 17-7, thus being crowned the inaugural Group 10 inter-town club champions.