Rugby Union in the Clarence Valley focusing around Grafton commenced in 1888 with the formation of two union clubs called Carltons and Rugbys and a loose competition slowly grew. In 1895 Southgate and Ramornie withdrew from the competition only later to reform as South Grafton Uniteds who played against the Grafton Wallaroos. In 1898 the Clarence River Rugby Football Association was formed comprising teams from Grafton, and further afield including Brushgrove Maclean Southgate and Harwood. Later this same year a branch of the NSW Rugby Union was formed in Grafton based around this competition.
In 1914 only three teams existed including South Grafton United, Westerns (Grafton) and Federals (Grafton). The competition dwindled away after the commencement of the professional rugby league code in 1915.
Over the years Grafton have developed a reputation for playing the game in a tough and hard manner. This has also spilled over into the off field social activities which try to foster a culture of mateship within the Club and warm camaraderie amongst visiting teams.