Peel Thunder Football Club was formed in 1996 after the West Australian Football Commission (WAFC) granted a ninth licence in the WAFL to the Mandurah-Peel region. The licence was issued on the condition that the club be ready to compete in the 1997 Westar Rules season. Geoff Miles was appointed as the club's inaugural coach and Phil Gilbert appointed captain. The Thunder managed just one win in 1997 and finished last on the ladder, with Scott Simister winning the inaugural best and fairest. They managed another one-win season in 1998, before going winless in 1999.