[3][note 1] Before construction started on the Waikerie railway, there was active discussion about where it should branch from the Barmera or Adelaide-Wolseley line.

Eventually, the decision was made that it should branch from Karoonda at the 30-mile siding from Tailem Bend.

Other possible branching points at that stage included the 40-mile (Borrika) and 58½ miles (Mindarie) from Tailem Bend.

[8] The Waikerie line was part of a significant expansion of the railways in South Australia in the early part of the 20th century to facilitate greater development of the rural areas of the state.

The estimated cost of the 74 miles (119 km) Karoonda-Waikerie line, including rolling stock, was £251,350, with expected revenue of £10,000 per annum, working expenses of £10,820, and interest costs of £10,054.