Despite its name, it never directly served Silver Springs but instead ran from Ocala west to Dunnellon and to the Gulf of Mexico at Homosassa.

The Silver Springs, Ocala and Gulf Railroad was assigned land grants on March 12, 1879, by the state legislature of Florida.

One of the early organizers of the railroad was John F. Dunn, for whom Dunnellon is partially named for.

By 1901, the Silver Springs, Ocala and Gulf Railroad owned four locomotives.

This includes the now discontinuous segments in Ocala (which is now a short industrial spur) and track from Dunnellon to the Crystal River Energy Complex in Red Level.