The project for starting a school to provide sound education to girls on Christian principles was initiated by the Rev. J.B.D' Aquilar in 1864. It was given a practical shape by a Church-related ladies group in Dalhousie who began collecting funds for this school which they wanted to be placed in Dharmamsala. However on the persuasion of Mrs. Cotton, wife of Bishop Cotton, it was founded in Shimla in the spring of 1866 at Holly Lodge on Jakhu. Two years later, the school authorities bought Auckland House and the name of the school was changed accordingly. The school began with 32 pupils and the the Head was Mrs. Mackinnon. The School shifted to its present site on the 6th of November, 1869, after extensive alterations and additions had been made to the building, including the School Hall.
The early years were those of great struggle due to lack of funds and adequate staff. In 1904, Miss Strong from the Cheltenham Ladies College became Headmistress and brought with her several other Cheltenham teachers. At once the School became popular and was known as "The Cheltenham College of India". The days of trial, however, were not over. In 1905 an earthquake caused much damage to the School building and for a while the girls had to live in tents. Despite repairs, the building gradually became unsuitable for the purpose of running a school, and the Governors took the bold decision to pull it down and build a new one on the site.
