[2] Famous for its tin mining long before the Independence Day of Malaya,[3] Batu Gajah had been an ideal place for Chinese immigrants to stay and work during those years.

It started out as one of the many villages of mukim Sungai Terap, developed under its titular chief, the Sri Amar DiRaja, the early 19th century.

Near Kampung Pisang at the southern end of town, it replaced the old station at Jalan Pusing which is being turned into a museum and then foodstalls.

In addition, the Malaysian railway operator, Keretapi Tanah Melayu, is constructing a new central workshop in the vicinity of Batu Gajah to replace its facility in Sentul.

Located near the new railway station, the centre will house repair workshops, training facilities and staff quarters.