The Mallala Race Circuit, as it was originally known, was established on the site of the former RAAF Base Mallala. The land was purchased from the Royal Australian Air Force at public auction in 1961 by a group of enthusiasts seeking to create a replacement for the Port Wakefield Circuit. South Australia had been allocated the 1961 Australian Grand Prix on the state by state rotational system that applied at that time, but the organisers had subsequently been informed by the Confederation of Australian Motor Sport (CAMS) that the 2.092 km (1.3 mi) Port Wakefield venue, which had hosted the 1955 Australian Grand Prix, was no longer suitable to host the event.