When the IV opened in 1917, it began hauling passengers and copper ore daily from Lower Camp to the Western Pacific station at Paxton.
While the IV was built primarily to serve the copper mine at Engels, it was also a common carrier.
Alvin Fickewirth states that the IV was sold to the Western Pacific Railroad (WP) in 1921.
A 1931 public timetable published by WP listed the Indian Valley Railroad with two daily round trip trains.
However, Donald B. Robertson's book states that the owner of the IV in 1931 was "California-Engels Mining Company".