Lord Sheffield’s Anglo-Australian Cricket Team V Combined Australian Team

The inter-colonial period was a formative period for first-class cricket in Australia.

Commencing in 1851 with a match between Tasmania and Victoria, New South Wales, South Australia and Western Australia competed with one another.
Early matches were organised by enthusiasts and played for distinction.
In 1892 inter-colonial competitions were formalised when cricket benefactor Lord Sheffield, who was in Australia promoting the 1891-92 England Test team lead by WG Grace, donated £150 to the NSW Cricket Association to fund an annual trophy for an inter-colonial competition.

With the SCG the home ground of the Cricket Association the SCG became (and remains) remains the primary location for first-class cricket in NSW.
From The Australasian, November 1891