The Australian Shepherd was actually developed in the USA but there is much debate over the origins of the foundation stock. It is believed the dogs travelled from Australia to the USA with the flocks of Merino sheep and the Basque Shepherds who tended them sometime in the 1800's.
Some contend that the Australian Shepherd came to Australia from Spain when the first Merino sheep arrived and then travelled on to the USA. Others believe they were Australian Sheepdogs derived from the Smithfield and some type of collie, or possibly the German Coolie or it's ancestor. More recently the theory has been put forward that the dogs travelled direct to the USA from Europe with Merino flocks. The name came about because of the believed link with this country.
Further historical research is required but there is evidence that this type of dog has been worked here in Australia in the past and documentary evidence shows Australian Shepherds having been sent to the USA as late as the 1950's
Once in the USA, Australian Shepherds were used to work sheep and later cattle, developing quite a reputation as a working dog. Legend has it that these dogs were held in reverence by the native Indians because of their blue eyes. They were called the "ghost - eyed ones" and it was thought the Indians left these "spirit" dogs and their owners unharmed. Nowadays they are a very popular family pet, an obedience and agility dog, a working dog and a show dog.