In December 1977, Conrail was set to abandon 25 miles (40 km) of their ex-New York Central Railroad trackage between Kankakee and Sheldon, Illinois, when instead it was purchased by Beaverville businessman Fey Orr to service his lumber and agricultural products industry based there.

Eighty miles of the bankrupt Chicago, Milwaukee, St. Paul and Pacific Railroad's trackage from just north of Donovan and Danville were purchased in 1981.

Currently, the KBSR operates about 155 miles (249 km) of trackage in a vaguely triangular shape between Kankakee, Danville, and Lafayette, with numerous sidings.

The Kankakee, Beaverville and Southern is privately owned, and serves the various small communities it passes through and their primarily agricultural industries.

In recent years it was considered unusual in that it continued to roster Alco diesel locomotives decades after their builder's demise, and became all the more popular amongst railfans for it.