[1] The Nevada County Narrow Gauge Railroad Company incorporated on April 4, 1874,[2] and was headquartered in Grass Valley, California.

[3] The need for rail service in the semi-mountainous and wooded area of Grass Valley and Nevada City was precipitated by mining operations subsequent to the California Gold Rush.

In addition, timber operators wanted to make their land accessible to the Southern Pacific Company in Colfax.

[4][5][6] On March 20, the California legislature and Governor Newton Booth approved the right to build and operate a 3 ft (914 mm) narrow gauge from Colfax, through Grass Valley, to Nevada City.

After leaving the Colfax depot, the road headed north, parallel with the Central Pacific Railroad, then crossed Bear River, and into Nevada County.

[12] The road proceeded into Chicago Park, a fruit and grape growers colony,[13] and then continued into Grass Valley.

With the outbreak of World War II, they sold it in 1942 for $251,000 (~$3.7 million in 2023) to Dulian Steel Products Company and the last train to run over the line was on May 29.

There were several notable passengers, including presidents Ulysses S. Grant and Theodore Roosevelt, singer Emma Nevada, and Britain's Prince Albert.