John Murray, Marquis of Tullibardine, who later became the 7th Duke of Atholl, established the regiment after the conclusion of the Second Anglo-Boer War in 1902. Its initial membership consisted of volunteers from Scottish units that had fought in the war who chose to demobilise and remain in the colony. The new unit wore his family tartan and took the form of an oversized battalion with companies in a number of major Transvaal towns.