It opened on 18 December 1914, originating from a junction with the Barmera line at Karoonda.

The line extended eastward through the Murraylands region, ultimately terminating at Peebinga, two kilometres from the Victorian state border.

Although the net operating loss was projected at £11,804 per annum, the amount was deemed acceptable since it enabled agriculture on 621,000 acres (2510 km2) of previously undeveloped land.

[6] Stations and unstaffed sidings were established along the route, and several townships grew, but none have survived today.

[7] They included: In 1927–28, consideration was given to extending the Peebinga railway line across the state border into Victoria then northward to Morkalla.