The demobilisation of the AIF was completed in early 1921 and in April that year it was officially disbanded. The Australian government then decided to reorganise the units of the Citizen Forces (later known as the "Militia") in order to perpetuate the divisional structure, numerical designations and battle honours of the AIF. As a result of this, the 17th Infantry, a militia unit that could trace its lineage back to 1860, was reformed as the 17th Battalion (The North Sydney Regiment), drawing personnel from the 17th Infantry Regiment. Through this link, the 17th Battalion inherited two theatre honours, "Suakin 1885" and "South Africa 1899–1902". During the inter-war years, the battalion was assigned to the 8th Brigade, which was headquartered in North Sydney and formed part of the 2nd Military District.