The poem tells the story of a horseback pursuit to recapture the colt of a prizewinning racehorse that escaped from its paddock and is living wild with the brumbies (wild horses) of the mountain ranges. Eventually the brumbies descend a seemingly impassably steep slope, at which point the assembled riders give up the pursuit, except the young hero, who spurs his pony down the "terrible descent" to catch the mob.
Several characters mentioned in the early part of the poem are featured in previous Paterson poems, "Clancy of the Overflow" and Harrison from "Old Pardon, Son of Reprieve".
The Snowy River is indeed a real river in Australia, with its headwaters in the highest section of the Great Dividing Range near the easternmost part of the border between New South Wales and Victoria.
While the location of the ride in the poem is left unspecified, it clearly takes place somewhere along the Great Dividing Range.
The poem, itself, is set in the area of today's Burrinjuck Dam where Banjo helped round up brumbies as a child and later owned property. This is recorded in his selected works.
There is a possibility that another exceptional and fearless rider, Charlie McKeahnie, who was born in 1868, might have been the inspiration for the poem, because of a dangerous riding feat in the Snowy River region in 1885, which Charlie McKeahnie took part in when he was only 17 . Historian Neville Locker supports this theory, adding that a prior poem had been written about McKeahnie by bush poet Barcroft Boake and that the story had been recounted by a Mrs Hassle to a crowd that included Paterson. Locker also offers as evidence a letter by McKeahnie's sister that discusses the ride and Paterson's hearing of the ride.
The full text of the poem is printed several times in microprint as one of the note's security devices.