Over time, houses were built around the railway station, and Albion Park Rail developed into a town in its own right, and with its own name.

Albion Park Rail is located along the shores of Lake Illawarra, near Koona Bay.

Albion Park Rail is the site of the Illawarra Regional Airport which is the location of the Historical Aircraft Restoration Society.

Albion Park Rail has a number of heritage-listed sites, including: The Illawarra Light Railway Museum located just south of the airport is dedicated to the preservation and display of historic light railway locomotives and rolling stock.

It holds regular open days featuring light and miniature train rides.