Sir William was born in Melbourne, the son of Thomas McPherson of Kingussie and Jessie Fulton of Dundee, Scotland. He was educated at West Melbourne and entered his fatherıs engineering and machinery business, McPherson's Pty. Ltd. He became its Governing Director and under his direction, the company became one of the largest and most successful of its kind.

      He entered the State Parliament as the member for Hawthorn in 1913, and held the seat continuously until his retirement from politics in 1930. He was Treasurer 1917-1923 and had the unique experience of presenting six Budgets during his term of office. He accepted the leadership of the Nationalist State Party in 1927, and in the following year became Premier and Treasurer; his ministry was defeated in 1929. The strain of office had impaired his health, and he resigned his seat in the Legislative Assembly in August 1930.

      In recognition of his services, William Murray McPherson was created a Knight Commander of the Order of the British Empire in 1923. He was one of Victoriaıs outstanding philanthropists, and among his many charitable actions, two are of particular note. (1) The Emily McPherson College of Domestic Economy, towards which he contributed £25,000 (the name given to the College was a tribute to the work of Lady McPherson in connection with domestic science). (2) The Community Wing of the Queen Victoria Hospital for Women and Children was built with the gift of £25,000. This wing is now known as the Jessie McPherson Community Hospital for Women and Children, in memory of his mother, Jessie Fulton.

      Sir William was married in St. Andrew's Cathedral, Sydney, in 1892, to Emily Jackson. They had two sons and two daughters.