Although initially an independent company, the line was to be operated and maintained by the London and North Western Railway (LNWR).

Construction began in 1859, and by 1861 the line from Shrewsbury to Minsterley was completed, and opened on 14 February 1861.

Construction of the main line to Welshpool was completed later in 1861 and officially opened on 27 January 1862.

The Minsterley branch served the agricultural communities of the area, but its main purpose was to carry lead from the mines along the Stiperstones hills.

These mines were connected to the S&WR at Pontesbury by the 2 ft 4 in (711 mm) narrow gauge Snailbeach District Railways which opened in 1873 and closed in 1959.