The club was founded as SC Riesa in 1903 in the cellar of the local pub "Bodega" and was renamed Riesaer SV two years later. In 1917, they fused with FC Wettin and went on to play quietly as a local club until 1936 when they advanced to the Gauliga Sachsen, one of sixteen divisions in the top flight of German football during the Third Reich. After World War II the club was dissolved and replaced by the SG Riesa in late 1945.
The football team played independently of the sports club from 1952 to 1957 before rejoining the parent club. They climbed into the second division in 1955 and in 1968 they played their way into the top tier DDR-Oberliga for the first time. Stahl would spend sixteen of the next twenty seasons in the top level, but frequently struggled to avoid relegation.