The Local Government (West Midlands) Order 1965 was made on November 3, 1965, with the changes to come into effect on April 1, 1966. The Order was debated in the House of Commons on December 2, 1965. John Horner, the Labour MP for Oldbury and Halesowen stated that while the boroughs of Oldbury and Rowley Regis had supported the creation of the new county borough in 1961, they no longer did so. In contrast, Peter Griffiths, Conservative member for Smethwick stated that the working party consisting of councillors for the three boroughs had given up their opposition, and were trying to make a success of the new county borough. The group did, however, have objections to boundary changes which caused the transfer of an estate of council houses to West Bromwich.
The borough took its name from the ancient Manor of Warley, listed in the Domesday Survey as covering much of the area. This was subsequently divided into two parts: Warley Salop (in Shropshire) and Warley Wigorn (in Worcestershire). This was united as the civil parish of Warley in 1884, but later divided between the boroughs of Oldbury and Smethwick (Warley Woods).
Smethwick and Rowley Regis had been part of Staffordshire, while Oldbury was part of Worcestershire (having been transferred from Shropshire in 1844). The new county borough was placed entirely in the geographical county of Worcestershire. The Oakham area of Dudley and Tividale area of Tipton were also incorporated into Warley.
| Existing local authority | Area (acres) | Population 1961 | Notes |
|---|---|---|---|
| Rowley Regis MB, Staffordshire | 1,483 | 47,831 | Remainder of borough was divided between West Bromwich CB (44 acres, pop 43) and Halesowen MB (2 acres, pop 150) |
| Oldbury MB, Worcestershire | 1,231 | 51,902 | Remainder of borough was divided between West Bromwich CB (11 acres, pop 43) and Halesowen MB (95 acres, pop 2,003) |
| Smethwick CB | 988 | 67,501 | Remainder of borough was divided between West Bromwich CB (20 acres, pop 889) and Birmingham CB (3 acres, pop 0) |
| Birmingham CB | 50 | 1,820 | |
| Halesowen MB, Worcestershire | 37 | 525 | |
| West Bromwich CB | 32 | 169 | |
| Dudley CB | 10 | 317 | |
| Tipton MB, Staffordshire | 1 | 95 | Borough was abolished, most going to West Bromwich CB, part to Dudley CB |
| Brierley Hill UD, Staffordshire | 1 | 0 | Urban District was abolished, most going to Dudley CB |
On creation, the county borough was included in the area of the West Midlands Constabulary, which was formed to cover the five Black Country county boroughs formed in 1966. Warley was included in the area of the West Midlands Passenger Transport Executive in 1969, and nominated one member of the transport authority.
The political composition of the borough council was as follows following each election from 1967 to 1972:
| Year | Labour | Conservative | Liberal | Independent |
|---|---|---|---|---|
| 1967 | 31 | 26 | 1 | 2 |
| 1968 | 17 | 39 | 1 | 3 |
| 1969 | 10 | 47 | 1 | 2 |
| 1970 | 17 | 41 | 1 | 0 |
| 1971 | 26 | 32 | 1 | 1 |
| 1972 | 39 | 21 | 0 | 0 |
The first Mayor of Warley was Councillor Wilfred Carter JP.
Per saltire vert and or, two lions rampant in pale or, in fess of either flank a club in bend sinister surmounted by a caduceus in bend proper; on a chief or a lion passant vert. And for a crest: Issuant from a Saxon crown or, a demi lion rampant double queued vert holding with the dexter paw an arrow barb downwards proper. Supporters: on the dexter side a lion gules in the mouth an arrow proper; on the sinister side a dragon gules in the mouth an anchor or.
The "chief" or upper third of the shield bearing a lion passant came from the arms of Rowley Regis, and the "per saltire" division of the arms and green and gold colouring was found in Oldbury's insignia. The gold lions on a green background were from the arms of the Robsart family, while the crossed club and caduceus were the arms of James Watt. The crest featured a Saxon crown from which rose a green double-tailed lion, emblem of the Suttons, mediaeval lords of Dudley. The lion held an arrow from tha arms of Matthew Boulton. The supporters of the arms were a red lion and dragon. The lion was from the armorial bearings of Sir James Timmins Chance, while the dragon was intended to represent the ancient Britons, founders of the "old burh" or Oldbury. Both animals held objects in their mouths as heraldic differences: an arrow (as in the crest) and an anchor (for Cradley Heath's traditional industry). The motto chosen by the borough was "Unity and Progress".