Construction started in 1872, and the line opened between the Olneyville neighborhood of Providence and Pascoag, Rhode Island, in 1873.

[2] The company's name was changed to the Providence and Springfield Railroad in January 1872 by an act of the Rhode Island General Assembly.

[6] The new name reflected the company's ultimate goal of expanding to reach mills in rural northwestern Rhode Island and create a link towards Springfield.

[11] The railroad opened between Providence's Olneyville neighborhood and Pascoag, Rhode Island, on August 11, 1873.

[1][14] The company built its own station in Providence in 1880 at Gaspee Street, near the Great Salt Cove.

The New England Railroad shut down the line north of Pascoag within a year of assuming operations; it was returned to service in 1904.

[1][15] The line turned west at Primose and met the Pascoag Extension at Harrisville, Rhode Island.

[16] It ran along the east shore of Wallum Lake into Massachusetts and terminated at a wye with the NY&NE at Douglas Junction.