Timber obtained in the area was of a quality useful only for building and firewood or for the charcoal or paper production.
In 1888 Josef Ritter von Wenusch received a concession for a narrow-gauge railway from Garsten to Grünburg, with a possible extension to Klaus.
The Steyrtalbahn therefore concentrated on building the branch line from Pergern to Bad Hall, which was opened 1891.
and finally also the State of Upper Austria and city of Steyr for construction of the section Agonitz to Klaus.
In the First World War the line was important in providing transportation for armament makers between Steyr and Letten.
The end of the First World War saw economically difficult times began for the Steyr Valley Railway.
The light track prevented the employment of the new narrow gauge diesel locomotives (class 2095) which were introduced from 1958, so that the railway continued to operate exclusively with steam engines.
Museum operations are on Saturdays and Sundays from the beginning of June to the end of September with special trains at any time.