The Royal Women's Hospital began as the Melbourne Lying-In Hospital and Infirmary for the Diseases peculiar to Women and Children in a terrace house in Albert Street East Melbourne in August 1856. It was founded by a group of Evangelical ladies, led by Mrs Frances Perry, wife of the Bishop of Melbourne, and two young doctors: an Englishman, Dr John Maund, and an Irishman, Dr Richard Tracy.

In 1858 the hospital moved to its present Carlton site into premises designed by Tracy himself to the latest standards. In 1862 it became the first Australian hospital to train nurses; in 1865 it became the first specialist teaching hospital as Tracy was appointed lecturer in obstetrics at the new Medical School in the University of Melbourne. It became the Women's Hospital in 1884, and 'Royal' in 1956.

It became a big hospital very quickly, delivering more women annually than many of its equivalents overseas. By the 1890s it was delivering over 1000 women a year; by the 1930s over 3000 and by the 1960s, over 6000. It remained a 'charity' hospital until the introduction of Medibank in 1974, but continued to admit largely women of limited means.

It developed particular expertise in the treatment of puerperal and post-abortal infection, pre-eclampsia, diabetes in pregnancy, neonatal intensive care and infertility. Its clinical school has influenced standards in the practice of obstetrics and gynaecology throughout Australia. And it remains one of the few hospitals in the English-speaking world where midwives conduct normal deliveries and instruct students. In 1996 it relinquished its independent Board to become part of the Women's and Children's Healthcare Network. [Janet McCalman, 2006]