The Hazeldean Merino stud was founded by James Litchfield in 1865 with the purchase of a draft of sheep, the progeny of pure imported Rambouillet Merinos. These sheep were carefully bred until 1879 when a draft of ewes from the flock of David Taylor of St Johnston, Tasmania were imported together with several high-priced rams from the flocks of James Gibson of Belle Vue and W.H.Gibson of Fairfield. Other stud ewes were added and many valuable stud sires subsequently purchased in those early years.

James Litchfield attended the Sydney sales of 1884 and purchased dense-wooled