It is located in the historic Newfoundland Railway terminal on Water Street and contains exhibits detailing the history of the Newfoundland Railway and the history of coastal water transportation in the province.

The building was designated a National Historic Site in 1988 for its role in commemorating the important role played by the Newfoundland Railway in the social, economic and political history of the province.

In 2020, it was announced by St. John's City Council that the museum would close due to budget cuts.

The Railway Coastal Museum will continue on a seasonal basis.

[6] With the closure of the Newfoundland Railway, the terminal is no longer connected to any tracks, which were all torn up and the rails put to other uses.