Design work on the DHA-3 began in 1946 after DHA identified a need to replace the de Havilland Dragon biplane then in widespread use in Australia. Although the British parent company's Dove was being produced at the same time, DHA saw that the Dove was not entirely suitable for Australian conditions. Using the Dove as a starting point, DHA designed an aircraft with three four-cylinder Gipsy Major engines instead of the Dove's two Gipsy Queen six-cylinder engines and a fixed tailwheel undercarriage instead of the Dove's retractable tricycle undercarriage. Like the Dove the DHA-3 was sized to carry 8 to 9 passengers with a single pilot.