W.J. Barretto, the Deputy British Commissioner, who had his headquarters in Thayetmyo, had visited the Rotary Club of Cork in Ireland in late 1927 whilst on leave. He was so impressed that on his return to Burma, he organised a Club bearing the name 'The Rotary Club of Thayetmyo with the happy motto "Under Heaven, One Family'. This was in May 1928. Lacking information about the correct procedures, this new club did not conform with normal Rotary International practice. As a result , when they applied to R.I. for acceptance into Rotary, iy was deemed necessary to postpone action until Jim Davidson could personally call upon them.

In the summer of 1929, Jim Davidson spent three days in the city and was pleased to find a successful club of 33 members. During his stay, he found the members quite willing to make the necessary, and in some cases rather radical changes in order that they might be officially inaugurated. On July 17, 1929, the Thayetmyo Club was officially inaugurated with W.J.Barretto as President, and 2 months later on September 30, it received its charter, just beating the second club, in Rangoon.

Because there was no suitable hotel or other meeting place in Thayetmyo, the members had previously bought a suitable building with grounds overlooking the Irrawaddy where it met for tea every Saturday evening at 5, and for dinner once a month.

In 1929, there were only six Europeans resident in the city, so the greater majority of the membership was Burmese. Davidson remarked that "It will be interesting to watch its progress. If it can succeed, there is a prospect for further similar clubs in places that have a small European community or even where there are no Europeans at all."