In 1998, the Premier Division (top flight) clubs broke away to form the Scottish Premier League (SPL). The Third Division continued as the fourth tier of the league system, but was now the third tier of the SFL. In 2013, the SFL and SPL merged to form the Scottish Professional Football League (SPFL). The SPFL named its fourth tier as Scottish League Two, which effectively replaced the Third Division.
The Third Division consisted of ten teams throughout its existence. From 1994 until 2005, each season the top two teams were promoted to the Second Division. From 2005 until 2013, only the champion was automatically promoted to the Second Division at the end of each season. The clubs that finished 2nd, 3rd and 4th entered a play-off with the 9th placed team of the Second Division.
There was no relegation from the Third Division.
The teams played each other four times with three points for a victory, one point for a draw and zero points for a loss.
