The Mudgee Wombats competition flourished after World War 1 with representation in 1st, 2nd and 3rd grades. The Mudgee High School students played in the 2nd and 3rd grade with the addition of some enthusiastic school teachers.
Some of Mudgee's outlying towns being Kandos and Gulgong fielded teams in the competition at this time. In fact the Kandos team was lead by a Maori Rhodes Scholar who arrived to training and matches in frock coat and top hat.
Mudgee rugby then lapsed until the 1930's when men returning from Sydney GPS schools were anxious to revive the game in Mudgee. Without any formal competition surrounding towns such as Gulgong, Goolma, Rylstone, Wellington and Bathurst met on the odd weekend to play games. A formal competition was hard to get off the ground because transport was so difficult.
There was great excitement in 1933 as the All Blacks from New Zealand were scheduled to play NSW Western Districts at Wellington NSW one hour away from Mudgee. Many local games were played with possible and probable teams picked for selection to play the mighty All Blacks. Mudgee ended up having 3 representatives in the game - Mr. Cluff, Mr. Spring and Mr. Durrell. The Western team was soundly beaten 55 -5 but they managed to score 3 tries which was a feat seldom performed against the All Blacks.
The history of the club is patchy with very little sport played generally during World War 2 (1939-1945). However in 1953 the Mudgee Rugby restarted and entered into the larger regional competition known as the Central Western Competition playing teams from Wellington, Dubbo, Parkes, Orange and Cowra.
The Wombats jerseys in the 1960's s were white. However mothers and wives complained so bitterly about trying to keep them clean that they changed to brown - just like wombats. However in the 1970's a Wombat player's car containing all the club's jerseys was stolen. This player, Tommy Sheridan had previously played with the Eastern Suburbs rugby league team.