It is located on the southern bank of the River Ouse (which the line crosses just beyond the platforms) and is also situated on the Greenwich Meridian.

On 7 August 1960 the group began working a short stretch of line between Sheffield Park and Bluebell Halt, just south of Horsted Keynes which was leased to it by British Railways.

By 1968, the group had raised enough funds to purchase both the Sheffield Park and Horsted Keynes stations, with the former now the Bluebell Railway's headquarters.

Beside the station, with a separate entrance from the A275 is the former Woodpax yard, on which has been built a large carriage shed and adjoining Museum building; this project was known as "Operation Undercover".

In addition, several road bridges would need to be replaced on the route, including one just south of Sheffield Park station.