The Royal Canadian Naval Volunteer Reserve (RCNVR) was created on January 31, 1923, by Commodore Walter Hose, who was director of Naval Service. His goal was to form a "citizen-navy" and give the Royal Canadian Navy a strong presence across Canada. Facing major budget cuts, Hose believed that establishing a reserve force would help gain support nationwide. As a result, Naval Reserve Divisions were set up in every major Canadian city.

On Saturday, 31 March 1923, The Calgary Herald announced that a half–company of the Royal Canadian Naval Volunteer Reserve was to be established in Calgary.
Commander Hibbard of the office of the Naval Minister in Ottawa visited Calgary and met with two Navy League officials, Ray Hinton, who had been a lieutenant of the Royal Navy Volunteer Reserve, and W.H. Mitchell, a retired chief petty officer of the Royal Navy. These three worked on plans for a small initial training program.

There was no barracks available, and the first recruits were interviewed and attested in the Navy League office, which was Mr. Henry Irwin's insurance agency in the Leeson and Lineham Block and the office of the Commanding Officer of the Sea Cadets.
 
Successful recruits were kitted up, given preliminary training and travelling instructions in the back of Grant Radio, Ltd., run by radio pioneer W.W.W. Grant, also in the Leeson and Lineham block on Second Street West.
Lt. Ray Hinton was appointed the First Commanding Officer, and Mr. Mitchell was the petty officer instructor, as a Half Company was not entitled to a Chief Petty Officer.
Recruits were enlisted in two groups of about 20 each, with the first group being composed mainly of senior sea cadets, some not old enough to join. Reg. Jackson, for example, was a few weeks short of his 17th birthday.
Soon after receiving their kit, they were sent to HMCS Naden in Esquimalt for two weeks of training with the permanent force.
When Commodore Hose had opted for a Naval Reserve in preference for maintenance of a fleet, he had let it be known that a key role of the RCN was to foster, encourage, and train the RCNVR.
After completing a refresher course in Esquimalt, Petty Officer Mitchell arranged headquarters for the half-Company at the old No.2 Police Barracks, 1807 2nd Street East, within the $75 monthly rental limit. The reserves drilled there and stayed until November 1939.

The initial training equipment came from Esquimalt, including a 21-inch torpedo, a 12-pounder gun, wire, hemp, blocks and tackles, rifles, and bayonets. The reserves conducted training sessions twice a week, focusing on rifle drills, seamanship, cutlass drills, field gun exercises, general drill, and range practice.

Sports initiatives, including soccer, softball, and hockey, were established. Furthermore, the installation of a radio transmitting station facilitated the creation of a three-way radio network linking Edmonton’s Half-company with Esquimalt. By the 1930s, this system had evolved into a communications channel between the Pacific Command and Ottawa.
Reservists received 25 cents for each drill attended, with a bonus of $5 if 48 drills were attended during the year. They spent two weeks or more serving with the RCN each year during the summer, where they were paid on par with the RCN.

Uniforms and transportation were provided, but officers were not paid and had to supply their own uniforms. Early uniforms resembled those of the Royal Canadian Navy (RCN), except reserve seamen's collars and officers' sleeve lace featured a wavy pattern, earning them the nickname "Wavy Navy." Later, collar stripes became straight, though reserve officers kept their wavy insignia until the end of World War II.
In its early years, the RCNVR relied heavily on the Royal Navy for training, equipment, and advanced instruction, as well as on Canadians with prior service in the RCN or Royal Navy, due to financial constraints.
Space was allocated on British cruisers for Canadian reservists during their summer training, providing valuable opportunities for sea experience. At the time, the Royal Canadian Navy operated only one destroyer and two minesweepers per coast. Training cruises included destinations such as the West Indies; however, advancement within the ranks was slow, and there were limited opportunities for transfer to the regular navy.
As time went by, both instructors and shipping became more Canadian. In 1933, the Saguenay and the Skeena were commissioned – the first ships to be designed and built for Canadian needs. 1933 was also the year that the Calgary half-company came under the command of Lt. Reginald Jackson, one of the original recruits.
The reserves were also in the public eye, taking part in civic events in Calgary and the surrounding area, and were popular with the community, being referred to as the “Chestermere Lake Navy.”
By the 1930s, Europe’s political shifts were having a significant impact, prompting the Royal Canadian Navy to prepare for anticipated changes. Additional RCNVR divisions were established nationwide. The designations “company” and “half company” were discontinued, and the Calgary unit was subsequently referred to as the Calgary Division RCNVR. Its personnel complement was expanded from 50 to 80.
Beginning in 1937, the Calgary Division received directives regarding mobilization procedures in the event of war. The 19 divisions nationwide were tasked with establishing a network of basic training centres to support naval training operations.

On 10 September 1939, Commanding Officer Lieutenant Jackson received the telegram “Grapnell Germany” at the start of the war, and reserves departed for Esquimalt within 24 hours.
 
References:

E. Corbett (1973), Calgary’s Stone Frigate HMCS Tecumseh, 1923 -1973, Century Calgary Publications.
McKee, Fraser CD CDR (NR) (1973), Volunteers for Sea Service - A Brief History of the Royal Canadian Naval Volunteer Reserve, its Predecessors and Successors, on its 50th Anniversary, 1973, Houston Standard Publications.
HMCS Tecumseh 75 With Pride 1923 -1988 (1988), A tribute to Calgary’s Naval Community.