The line was primarily built to allow the exploitation of black coal deposits in the Outtrim area.

On 28 October 1892 a short 1-mile (2 km) branch to the Coal Creek coalfield was opened, connecting with the Outtrim line just south of Korumburra station.

[1] The closure came at a time when the Victorian government was closing many short branch lines throughout the state.

The Jumbunna railway embankment[2] and viaduct[3] are listed in the Victorian Heritage Inventory.

This article about rail transport in Victoria, Australia is a stub.