The line was authorised by the Derry Central Railway Act 1877 (40 & 41 Vict.

c. cxii), and constructed from Macfin Junction (between Coleraine and Ballymoney) to Magherafelt, serving Knockloughrim, Maghera, Upperlands, Kilrea, Garvagh and Aghadowey.

Although nominally independent, the line was funded and operated by the Belfast and Northern Counties Railway.

Despite the celebration of its opening, it was never a financial success, and in September 1901 it was taken over by the BNCR for the sum of £85,000.

The track had flat bottomed rails, followed the contour of the land and the only large structure was a lattice girder bridge over the River Bann near Macfin.