It is built on the site of the Bailey Level Gold Mine.

An attempt was made in 2003 by the owners of Clearwell Caves to open the mine as a tourist attraction, but this was ultimately unsuccessful.

In 2012, a small group from the Royal Forest of Dean Caving Club discovered the mine and a quantity of disused railway equipment and proposed to the owners that a volunteer-led project could start work on restoring the site.

As of 2014, two locomotives and a number of wagons have been moved to Lea Bailey from storage at Clearwell Caves or the nearby Hawthorn Tunnel.

In 2013 the Lea Bailey Light Railway Society was formed;[2] its members act as volunteers, undertaking all aspects of work on the site.