The Australian Palouse Pony Association was created due to their being a height limit for spotted horses to be registered as an Appaloosa (14hh and over).  A Palouse pony is under 14 hands high but displays the same colours and coat patterns as the Appaloosa horse. 

The Palouse name was chosen because it is the name of the valley and river in Idaho USA, where the Nez Perce Indians bred the colourful horse, which has since been popularised as the Appaloosa Horse, while the pony is now known in Australia as the Palouse.  Palouse ponies are perfect for children due to their small size and can be used in all horse sports including English and western showing, pony club, trail riding, jumping, dressage, eventing, cutting, campdrafting and reining.

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