Although the owner of the large Canning Downs station offered land to enable a direct route from Warwick to Killarney, a more circuitous route was chosen to serve surrounding farms.
After construction of a bridge over the river and extension of the line south to Stanthorpe, a stop at East Warwick became Warwick railway station and the old terminus was renamed Mill Hill railway station.
[3] Sidings for the first stage were located at Hermitage, Glencairn, Swan Creek, Karcaruda, Mount Sturt, Yangan and Rockbrae whilst in the second stage Danderoo, Wiyarra, Tannymorel (28°17′27″S 152°14′51″E / 28.2907°S 152.2474°E / -28.2907; 152.2474 (Tannymorel railway station))[4] and Grayson (28°18′15″S 152°15′25″E / 28.3042°S 152.2570°E / -28.3042; 152.2570 (Grayson railway station))[5] were stops.
Grain traffic and cheese from a Yangan factory constituted its major cargo and, after the discovery of coal at Mount Colliery east of Tannymorel, it too contributed greatly to the profitability of the line.
The tramway joined the line at Tannymorel to transport coal from a nearby mine to the railway.