It was the third of four narrow gauge lines of the Victorian Railways, opening to Beech Forest in March 1902, and extended to Crowes in June 1911.

It was also the last to close, finally succumbing in June 1962, although the line had been truncated back to Ferguson railway station in December 1954, only to be reopened to Weeaproinah in January 1955.

The primary traffic was sawn timber and firewood, with many sawmills located adjacent to the railway, or accessed by short tramways.

The onset of the Great Depression, and competition from motor vehicles, saw traffic decline to a point where only one train each way operated over the line three days a week.

There were proposals for the line to be further extended as far as Princetown on the Great Ocean Road, with surveys being carried out as far as Wangerrip, or "Colac Tree Station".