The Rum Rebellion came about during a period of significant tension in the Australian colony of New South Wales. Major George Johnston, a military officer and prominent landowner, led a group of soldiers in a coup against Governor William Bligh, who had enacted strict regulations on the rum trade. This was particularly contentious as the rum trade was a vital economic activity for many settlers and military personnel, often used as currency. The conflict was fueled by longstanding frustrations over Bligh's leadership style, which was perceived as authoritarian and alienating to the local elite and traders.

On January 26, 1808, Johnston and his allies effectively seized control of Sydney, arresting Bligh and forcing him out of office. This military coup, marked by a largely bloodless takeover, showcased the underlying power struggles within the colony. The intervention was vehemently supported by local landowners unhappy with Bligh’s policies, particularly regarding their economic interests in the rum trade. Johnston's forces quickly established a new regime, governing New South Wales for a brief period.

However, the new government was short-lived, as the British authorities soon intervened. In 1809, a British naval force arrived, reinstating Bligh to power and effectively reversing the gains made by the rebels. The Rum Rebellion serves as a noteworthy instance of military intervention in colonial governance and reflects the complexities of power dynamics between settlers, military leaders, and colonial authorities.