Opened in stages from 1881, it was built to narrow gauge and joined Mount Gambier railway station, which was at that time the eastern terminus of a line to Beachport.

The railway connecting Mount Gambier to Naracoorte was initially approved by the Parliament of South Australia in 1867 to be built to 5 ft 3 in (1,600 mm) gauge.

[6] In 2001, expressions of interest were sought for a private operator to reopen the line with the state government offering financial assistance to gauge convert, but nothing came of it.

[15] On 13 February 2019 the South Australian Regional Rail Alliance (SARRA) called on the State Government to standardise the line for freight and possible passenger services but still nothing has come of this either.

It was extended further to Pick Avenue to link up with the existing Jubilee Highway path leading to Umpherston Sinkhole and Blue Lake Sports Park.

An additional 3 km was built west from White Ave to Cafpirco Rd along the disused railway line to Millicent.