Albert Charles Saunders was born 12 October 1874 in Summerside, Prince Edward Island to Charles and Margaret Saunders. He married Leila Graves in December 1902 and the couple had four children.

Saunders received his early education from the local Summerside schools and then attended Prince of Wales in Charlottetown where he excelled in college sports. He began his legal training in the office of J. Edward Wyatt of Summerside and was subsequently articled to the firm of Peters, Peters, and Ings of Charlottetown. Called to the bar on 3 October 1899, he opened his own law firm in Summerside and was recognized as a leading criminal lawyer. Another future premier, Thane A. Campbell, later read law with Saunders and became his partner in the late 1920s.

Saunders first entered politics as Mayor of Summerside, a position he held for four terms. In 1919 he was asked to run in the district of Second Prince for the Liberal party and held this seat until his resignation. Also in 1919, he played a major role in bringing William Lyon MacKenzie King from Ontario to the Island to run in the federal constituency of Prince. In 1923, Saunders became leader of the Liberal Opposition and in 1927 he defeated the Conservative government of J. D. Stewart, making him the sixteenth premier of Prince Edward Island. This particular election campaign was fought primarily on the issue of prohibition of which Saunders was a firm supporter.

As premier, Saunders focused on the betterment of Island life particularly in the areas of education and transportation. He advocated for the improvement of the Island