[1][2] Northam became an important junction station with a large yard, signalbox and locomotive depot to serve lines radiating out to Goomalling, Mullewa, Mukinbudin and Wyalkatchem.

[4][5] As part of the construction of a new dual gauge Eastern Railway from Midland via the Avon Valley, a new station was opened on the eastern side of the town on 7 October 1966 by the Minister for Railways Charles Court.

Part of the original line along Fitzgerald Street was retained to allow access to the steam locomotive depot and oil and flour mill sidings.

Narrow gauge lines branch off east of the town north to Goomalling and south to York and Albany via the Great Southern Railway.

[10][11] The Indian Pacific also passes here, running once or twice a week (depending on the time of year) between East Perth and Sydney Central, but does not stop at the station.