Western Australia applied to join the competition, however the plans for the tournament had already been confirmed between the other three states at that time. Alternate arrangements were made, where Victoria sent a team for a three game series in September as a way for Western Australia to prepare for their entry in the 1937 tournament.
As had been the case in the two previous editions of the tournament, each team met each other team twice over the course of the week. In each game, two competition points were on offer to the teams. The points were awarded as follows:
Win – two points
Tie – one point
Loss – no points
At the end of the tournament, the team with the most points was declared the winner, and awarded the Claxton Shield. Had there been a tie between New South Wales and Victoria for first place, they would have been declared joint winners. However had South Australia been involved in a tie for first, they would have retained the Shield.
In preparation for their admission, the Western Australia Baseball League invited both New South Wales5 and Victoria6 to come to Perth to play in an interstate series. Though New South Wales did not participate, Victoria did send a team for a three game series from 19 to 26 September, which the visitors won two games to one.789