The museum opened on 10 November 1962, after the Australian Railway Historical Society (ARHS) Victorian Division was allocated space at Newport Workshops by the Victorian Railways to develop a collection of key examples of steam locomotives that were then in the process of being replaced by diesel and electric locomotives.

By the late 1980s, the early diesel and electric locomotives that had replaced steam traction were themselves nearing end of life, and the museum expanded its collection to incorporate a number of key examples.

[1] Following a safety audit by VicTrack, the landlord and owner of most of the exhibits, the museum closed in February 2010.

[3] In recent years, projects have been undertaken to construct roof canopies to cover the exhibits and protect the collection from the elements.

[9] During school holiday periods, the museum opens on both Saturdays and Sundays, between 12 noon and 5 pm.