[2] The museum's origins stem from the formation of the Hunter Valley Steam Railway & Museum in 1973 which was formed following the closure of the Glenreagh to Dorrigo branch line the previous year with the aim of restoring the 69 kilometres as a tourist railway.
[3] Much of the rolling stock was stored at the former Rhondda Colliery, three kilometres from Cockle Creek while the line was repaired.
[6] On 20 December 1984, the section from Glenreagh to Lowanna was reopened with 5069 hauling the first train.
[10] However, before operations could begin, a faction within the museum's membership commenced legal action over the ownership of the collection and the line fell back into a state of disrepair.
[11] The dispute was finally resolved in February 1999 with the Glenreagh to Ulong section of the line sold to the Glenreagh Mountain Railway and the Ulong to Dorrigo section sold to the Dorrigo Steam Railway & Museum.