[1] Initially, it ran from the junction at Bridgewater, on the main north–south Hobart to Devonport line, to New Norfolk, a distance of 18 kilometres.

The following years saw a number of plans to extend the line further up the Derwent Valley or to connect it to the west coast.

In 1940 there was a significant increase in log traffic along most of the line with the opening of a paper mill at Boyer, 14 km from Bridgewater.

In 1995, TasRail completely closed the line beyond New Norfolk after floods and heavy rain substantially damaged the track.

In October 2005, Pacific National, who had taken over commercial running of the TasRail network, closed the Derwent Valley Line west of New Norfolk.

in negotiations to regain access to the Derwent Valley Line with a view to restoring it to operation for tourist trains.