The Saskatchewan Liquor Board was established in accordance with The Liquor Act, 1925, on January 16, 1925. As legislated by the Act, the Board was comprised of one to three members appointed by the Lieutenant Governor. From the members, a chairman was designated to oversee the administration and daily operation of the Board in the distribution, permission for use, control and sales of liquor in Saskatchewan. Senior personnel reporting to the chairman included the chief inspector, chief accountant and warehouse manager. The head office and warehouse for the Saskatchewan Liquor Board was located in Regina.

On April 16, 1925, the Board opened eleven liquor stores that sold spirits, beer and wine. Additional liquor stores, as well as those only selling beer, were opened in communities throughout Saskatchewan after the Board served notice of intention to establish in accordance with the Act. The sale of wine at beer stores was added in 1932. Beer and wine stores ceased operation in 1959 and were either converted to full liquor stores or closed. The Board also administered permits for the use of liquor at banquets and special occasions, in special quantities, and by medical, dental and veterinary professionals in their practices.

In adherence to Section 14 of the Act, the Board established and oversaw a system of numbered districts in the province to administer the Act. Residents of age in each district were given the opportunity to petition for or against the establishment of liquor or beer and wine stores in their district. Subsequently, a vote on the issue was held if the required number of eligible voters had signed the petition. Further opportunities for petition and vote came in 1935 when an amendment to the Act provided for the issuance of licenses for beer to be sold by the glass in licensed men's parlours. Residents also petitioned for the cancellation of previously-issued licences to sell liquor.

The economic downturn in the 1930s followed by restrictive measures throughout the Second World War resulted in the closure of numerous liquor stores and beer and wine stores. As well, measures such as reduced store hours and the Purchase Card and Beer Coupon initiatives addressed the Board's need to control liquor supply during the war years. After the war ended, stores reopened and restrictive measures were lifted by the end of 1947.

In 1950, new Board policy allowed for store premises to be owned by the Board. Previously, the Board only operated in premises that it leased. By 1953, over half of the liquor stores operating in the province were owned by the Board. In 1959, The Liquor Licensing Act (S.S. 1959, c. 19) was enacted, thus removing from the Board the responsibility for the issue and control of liquor licences. The Saskatchewan Liquor Licensing Commission, while a separate administrative body, continued to operate within the Board's organizational structure. In 1965, an amendment to The Liquor Act (R.S.S. 1965, c. 382) provided for the establishment of special liquor vendors (later more commonly referred to as franchises). This allowed for liquor to be sold by the bottle at licensed facilities other than Board-operated liquor stores, yet still be distributed and controlled by the Board.

From 1982 to 1989, the Board's organizational structure included a chairman, but also a general manager to oversee the its administration and daily operations. On January 2, 1989, The Liquor Act and The Liquor Licensing Act were repealed and replaced with The Alcohol Control Act (S.S. 1988-89, c. A-18.01). As part of the new Act, one individual holding the title of chairman and chief executive officer was appointed to oversee the administration and operation of the Board, thus eliminating the general manager position. As well, changes to the Act's regulations allowed for additional liquor franchises in rural Saskatchewan, replacing larger Board stores with more cost-effective franchises.

The Saskatchewan Liquor Board ceased existence on July 1, 1993 when it amalgamated with the Saskatchewan Liquor Licensing Commission and the Saskatchewan Gaming Commission to form the Saskatchewan Liquor and Gaming Authority.