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Davies was first elected to the [[Legislative Assembly of Prince Edward Island|House of Assembly]] as a [[Liberal Party of Prince Edward Island|Liberal]] in 1872 just prior to Prince Edward Island entering [[Canadian confederation]]. With the issue of Confederation resolved and the land question settled as a result of Canada's promise to fund [[land reform]] and the passage of the ''[[Land Purchase Act (1875)|Land Purchase Act]]'', the major issue remaining on the island was that of school funding and whether the school system should be entirely secular and public or whether [[separate school]]s for [[Catholic]]s should be permitted. The issue divided both parties, and had led to the collapse of one government.{{cn|date=September 2019}}
Following the defeat of the [[Progressive Conservative Party of Prince Edward Island|Conservative]] government of [[Lemuel Cambridge Owen]] in 1876, Davies established a [[coalition government]] of [[Protestant]] Liberals and Conservatives with himself as [[Premier]] and [[Attorney-General]].{{cn|date=September 2019}} The Davies government was formed to enact a ''Public Schools Act'' which made school attendance compulsory, and created a non-sectarian public school system. The act was passed in 1877 and, with the issue around which the coalition had been formed having been resolved, the coalition itself began to unravel.{{cn|date=September 2019}} Davies' government reformed the civil service and brought in financial reforms before being defeated by the Conservatives in a [[Motion of No Confidence]] in 1879.{{cn|date=September 2019}}
Davies won a seat in the [[House of Commons of Canada]] in the [[1882 Canadian federal election|1882 federal election]] as a [[Liberal Party of Canada|Liberal]].{{cn|date=September 2019}} When the Liberals formed government after the [[1896 Canadian federal election|1896 election]] under Sir [[Wilfrid Laurier]], Davies became minister of marine and fisheries, and during 1898–1899 he was a member of the Anglo-American joint high commission at Quebec.<ref>{{Cite EB1911|wstitle=Davies, Sir Louis Henry|volume=7|page=865}}</ref>
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