The Santa Ana Rail Road was formed by the Newport Wharf and Lumber Company on August 23, 1889 to build a railway connection from the lumber company wharf in Newport Beach, California to the national rail network in Santa Ana, California.
Southern Pacific formed the Santa Ana and Newport Railway (SA&N) on November 7, 1892 to acquire the line from the lumber company on February 11, 1893.
Construction of a 10.76-mile (17.32 km) branch from Newport to Smeltzer began in 1899, but was incomplete when Southern Pacific merged the SA&N on November 23, 1899, and did not begin operation until 1 January 1900.
A trestle was built across the Santa Ana River where it entered Newport Bay; and track laying was completed in January 1891.
Southern Pacific's SA&N subsidiary purchased the Santa Ana Railroad in 1893 to deny Newport wharf access to its competitor.