Extending the recently opened Wagin to Newdegate railway line, located further south, to Salmon Gums was not seen as a feasible option as an alternative.

This 160 kilometres (99 mi) long railway, of which about half was surveyed by February 1929, was to service up to 3,000 newly-established farms in the Forrestania area.

[6] In August 1933, a bill was introduced into the state parliament to authorise the South Yilgarn railway, with the final destination for the line now being Mount Hampton instead of Forrestania.

[7] In August 1933, a report was published on the Southern Cross southwards and Lake Grace to Karlgarin proposals, after the Railway Advisory Board had carried out and inspection of the area in the month prior, supporting both.

The Southern Cross Southwards Railway was estimated to cost £A 3,500 per mile of construction and would serve 150 farms in the area, which would produce wheat and carry sheep as livestock.

[14] The two railway lines had received little funding in the previous year, sufficient only to cover preliminary work and survey expenses.