The Tyrolean Museum Railways have three main spheres of operation: When, in 1983, it finally became clear that the 79-year-old railbuses on the Stubai Valley Railway (Stubaitalbahn) were to be withdrawn from service, the Tiroler MuseumsBahnen Society was founded in May of that same year "with the aim of preserving these historically important vehicles for posterity."

Although initially the prospect of acquiring suitable premises for the society did not look good, thanks to political supporters, including the then mayor, Nischer, the former locomotive depot and part of the Stubaital station (waiting room and movements office) were able to be acquired and the Localbahn Museum was opened as early as summer 1985.

In order to create space for more vehicles, the majority of the trailer cars from the Stubai Valley Railway were sold or rented.

In October 2008 the museum railway company itself celebrated its 25th anniversary with the active participation of politicians from the state of Tyrol and the city of Innsbruck.

Since then the Localbahn Museum has developed into an attraction for railway fans from around the world and has a large number of visitors.