The introduction of regional rugby union teams in Wales occurred prior to the start of the 2003/04 rugby union season. From this date, Wales was represented by a smaller number of regional teams in both the Celtic League and European Cup competitions, where previously the top club sides were entered into them.
The introduction followed much controversy, as clubs disagreed with the Welsh Rugby Union (WRU), the governing body of the sport in Wales, over many issues, including the forming of partnerships, funding levels, loss of status and both the number and locations of regional teams.
Before regions were introduced to rugby union in Wales, there were nine clubs that played in the Welsh Premiership, the top-level of domestic club rugby in Wales. Since 2001, all of the teams also competed in the Celtic League competition, a cross-border competition involving Welsh, Scottish and Irish teams. Five Welsh clubs were also selected to take part in the Heineken Cup competition, which feature clubs from France, England and Italy in addition to the Celtic nations.
Concerns had been raised about the number of clubs playing at the top level, with regard to Wales not producing enough good-quality players to sustain nine clubs. Good quality players who played for clubs that failed to qualify for Heineken Cup rugby missed out on the experience of playing in such a tournament. In addition, the club game in Wales had struggled to cope financially since Rugby Union turned professional in 1995.
A suggestion to move to a regional structure was made by Graham Henry, then coach of the national Wales side, in December 2001 as he had concerns that the current club system was causing harm to the performance of the national team. Prior to joining Wales, Henry had first-hand experience of a regional structure as coach of the Auckland Blues, a regional franchise team in his native New Zealand. Henry's proposal was for the creation of four sides based in West Wales, South East Wales, the South Wales Valleys and Gwent. All players would be under contract to the Welsh Rugby Union, who would decide which players would play for which region.
Henry resigned from his post as Wales coach in February 2002, before any progress had been made with the plans. His replacement, Steve Hansen, also had coaching experience with a regional franchise in New Zealand, the Canterbury Crusaders, and he also advocated the regional structure.