In 1900, Western Australia, a self-governing British colony, adopted compulsory conciliation and arbitration legislation, the first Australian colony to do so. This article focuses primarily on the roles the colonial state and capital played in the adoption of the legislation and proposes a broader, more complex explanation for the introduction of the legislation than current mainstream Western Australian historiography, which, mostly, constructed the event as an unproblematic regional labour triumph. This article argues that the legislation was passed to prevent disruption to gold mining, the industry driving the development of the colony, and to revive the flagging political fortunes of the colonial government. It asserts that the timing of the legislation pre-empted a more effective bill being introduced under conditions less favourable to capital. Organized labour, which, through its lobbying, had created consensus about the desirability of introducing the legislation, was unable to influence the shape of the legislation significantly.