The discovery of gold in Te Aroha triggered a significant population surge as numerous miners and their families flocked to the region, drawn by the prospect of striking it rich. This influx of people led to the rapid expansion of the settlement. Recognising the growing needs of the burgeoning Catholic community, particularly the newly arrived families, Fr. Kehoe, the local Parish Priest, extended an invitation to the Auckland Sisters of Mercy. He sought their assistance in providing essential care and support, encompassing both spiritual guidance and practical aid, to the increasing number of Catholic residents in Te Aroha
The Sisters acquired a property boasting two dwellings: one served as a convent, providing residence for the Sisters, while the other functioned as a schoolhouse. On the inaugural day of school in 1903, the fledgling institution welcomed a mere seven pupils. However, the student body experienced rapid expansion, necessitating the Sisters to repurpose rooms within their convent as additional classrooms to accommodate the growing numbers.
Recognising the need for more suitable accommodation, the Sisters constructed a new, larger convent in 1908. This thoughtfully designed building incorporated dedicated rooms intended for use as classrooms, alleviating the immediate space constraints. As the school's popularity continued to surge, a significantly larger school building was erected in 1927. This new facility provided ample space for the students, rendering the use of the convent as classrooms unnecessary and allowing the Sisters to reclaim their living space entirely.
In 1930, St. Joseph's School achieved a pioneering feat in New Zealand's Catholic education history. The school became the first Catholic institution in the country to implement a bus transportation system. This service facilitated the daily commute for Catholic children residing in the Manawaru area who lived too far to walk to school. This innovation not only ensured consistent attendance but also broadened access to Catholic education for families in the surrounding rural districts.