In 1865 The Launceston and South Devon Railway opened from Launceston to Plymouth. This was built to Brunel's broad gauge of 7' 0¼", and was a subsidiary of the Great Western Railway. 21 years later, the London & South Western Railway opened its standard gauge (4'8½") railway from Halwill Junction. The GWR line was regauged to standard gauge in the 1870s. The two stations were side by side and the LSWR station became a through station when the line to Padstow opened in stages in the 1890's. The GWR line closed in 1962, with the LSWR line closing in 1966.
In 1965, Nigel Bowman purchased the locomotive Lilian from the Penrhyn Slate Quarry in North Wales. Although on a teacher training course, he set up a workshop and foundry at his parents' home where Lilian was rebuilt. In 1968, Lilian returned to steam and was occasionally used on a short length of track owned by a friend.
With a locomotive, Nigel Bowman started looking for somewhere to run Lilian on his own railway. He decided to abandon his career in teaching to build a railway to run Lilian on. However, with land prices in Surrey rocketing, and unsympathetic planners, it was decided to look elsewhere. By 1971, after looking at various sites, Nigel had identified Launceston as a possibility. With former school friend Jim Stone, an approach was made to Launceston Council, with proposals to lay a narrow gauge railway. This was supported from the outset by the council, and the task of purchasing the trackbed started. Much of the twelve years between the initial idea and opening was taken up by legal wrangles for odd parcels of land which had become the target of property speculators. For example, the site of the current Launceston Station was destined to become a housing development, however, the property boom quietened by the mid-1970s, allowing the purchase of the land.
The first ½ mile of track opened on Boxing Day 1983. Since then progressive extensions have been made, the latest to Newmills opening in 1995.
The car park at Launceston is the site of the LSWR station, while the station is the site of a rail served gas works. The café and booking office were built in 1919 for the first Ideal Home Exhibition, and were erected as a 3-bedroom bungalow in Surrey. The canopy is from Tavistock North, and was erected in 1986/1987. The workshop and museum buildings were originally used by the Launceston Gas Company.