Ancestrally speaking, sort of.
In the 19th century, a man named Thomas Hall started breeding dogs for working cattle. Hall crossed domesticated dogs with wild Australian Dingos he had tamed. The result was a breed known as “Hall’s Heelers.”
But the Blue Heeler breed we know today came about from additional crosses to the Hall’s Heelers. In the development of the breed, several types of dogs were included in the mix, each chosen for specific traits that would make the breed more adept at their jobs.
This included breeds like:
Dalmatian. To promote loyalty to the ranchers and their horses
Bull Terrier. For tenacity
Black and Tan Kelpie. For herding ability
The result of these crosses was a hardy, intelligent dog with a strong herding instinct, able to handle both the severe Australian weather and the often unruly Australian cattle. They were named for their method of moving reluctant cattle by nipping at their heels, and their distinctive blue-gray coats.