The early settlement of Birsay, Saskatchewan, began in the early 1900s as part of the broader homesteading boom following the province's creation in 1905, with homesteaders drawn to the fertile prairies along the expanding rail lines. Initial arrivals around 1903 in nearby districts, including areas that would become Birsay, were spurred by the Dominion Lands Act, which offered 160-acre homesteads for a nominal $10 fee to encourage western expansion. The Qu'Appelle, Long Lake and Saskatchewan Railroad (QL&SR) line reached Birsay by 1911, facilitating the transport of settlers and supplies, and transforming the region from isolated grassland into viable farming territory.

Pioneer demographics in Birsay and surrounding areas primarily consisted of European immigrants, including English and Scottish settlers from eastern Canada and overseas, as well as Norwegians arriving from the United States. Notably, Finnish immigrants established a presence starting in 1910, migrating from earlier Canadian and American colonies to the Rock Point district near Birsay, Macrorie, and Dunblane, forming a backcountry community divided between Laestadian fundamentalists and leftist "Red Finns." These groups contributed to the cultural mosaic, with Finnish settlers numbering in the thousands across Saskatchewan prairies during this era.

Founding events centered on the establishment of initial farms and basic community infrastructure, culminating in the opening of the Birsay post office on September 1, 1911, with F. Randall serving as the first postmaster until 1916. This post office marked a key milestone in the regional homesteading surge, providing essential communication links for scattered farms and reinforcing Birsay's role as a nascent hub in the post-1905 provincial development.

Early settlers faced significant challenges, including harsh prairie winters with extreme cold and blizzards that isolated homesteads, as well as the labor-intensive task of establishing basic infrastructure like wells, roads, and sod houses on undeveloped land. Isolation was compounded by limited transportation before full rail completion, forcing reliance on wagon trails and mule teams, while the need to clear land and prove residency for three years under homesteading rules added to the hardships endured by these pioneers.