Irish provinces have so far dominated the tri-nation competition involving Wales and Scotland with first Leinster and then Munster being crowned champions.
But now that Wales have followed Ireland down the provincial route, with the creation of five new regional sides, Davies reckons a Welsh triumph is now on the cards.
'People might not be expecting much because of all the changes that have gone on in Welsh rugby but the expectations we are putting on ourselves are high,' said Davies.
'The Irish sides have dominated this competition so far and we know that we didn't perform last year. But we are aiming to put that right.
'Certainly if the Welsh and Scottish sides can be more competitive than we have done in the past then it will make the whole competition a lot stronger.
'The structures have been put in place from the regional team right down to the development teams and local clubs and everyone is feeling more positive than ever before.
'Even with all the international players away at the World Cup we have got a number of promising youngsters coming through and have had a good pre-season.'
This season sees a revamped Celtic competition with a full 12-team league, with games played both home and away through the season, and the creation of a knock-out cup tournament.
Despite the absence of Scottish, Welsh and Irish internationals, the competition will continue throughout both the World Cup and Six Nations.
But Cardiff skipper Martyn Williams, one of those who will miss much of the domestic season, is convinced that the new system will stop young stars from 'disappearing' into the lower reaches of the league structure.
'For ages we have been crying out for a system that helps develop players and gives them time on the field against quality opposition and at last we have got it,' said the Wales captain.
'This will be a great opportunity for those youngsters to show what they are made of and make life difficult for us when we return from Australia.'
Certainly Williams' and Davies' clubs, Cardiff and Llanelli, have had an easier time of coming to terms with the reforms than the rest of Wales having opted to stand alone.
The three mergers that formed the Celtic Warriors Pontypridd and Bridgend), the Neath-Swansea Ospreys and Gwent Dragons (Newport and Ebbw Vale).
And Dragons coach Mike Ruddock admits he will be glad to focus on the rugby.
'It has been a difficult summer with all the politics and off-the-field problems involved with merging two clubs so it will nice to get back talking about rugby,' he said.
'I'm sure that things have been a lot more difficult at the regions where clubs have merged than at Llanelli or Cardiff but this is a new era and new future for Welsh rugby and we've just got to crack on with it.'
Neath-Swansea Ospreys welcome Ulster to the Gnoll in tonight's season opener though the pick of the opening night's fixtures sees the two former champions, Leinster and Munster, clash at Donnybrook.
Elsewhere Cardiff Blues, who take credit for two of only three Welsh victories on Scottish soil in the Celtic league, travel to Glasgow while the Celtic Warriors begin life away to The Borders who have picked Clark Laidlaw at outside half ahead of British Lion Gregor Townsend.
Tomorrow Edinburgh take on Connacht in Galway while Llanelli Scarlets face Gwent Dragons at Stradey Park.
Friday, 5 September
Glasgow Rugby v Cardiff Blues (Hughenden, 7.30)
Leinster Lions v Munster (Donnybrook, 7.30)
Neath/Swansea Ospreys v Ulster (Gnoll, 7.05)
The Borders v Celtic Warriors (Netherdale, 7.30)
Saturday, 6 September
Connacht v Edinburgh Rugby (Galway, 4.00)
Llanelli Scarlets v Gwent Dragons (Stradey Park, 5.30).