The first proposal to connect Llanfair Caerinion and Welshpool by railway was the Llanfair Railway of 1864; this would have been a narrow gauge line, with a mixed gauge section where it connected to the Cambrian Railways. This proposal was abandoned. The next attempt came in 1876 with the promotion of the Welshpool and Llanfair Railway Bill, which proposed a railway along a similar route to the 1864 effort. This Bill passed through the Houses of Parliament. This attempt failed in 1882 because the promoters were unable to raise sufficient capital. In 1886, another Welshpool and Llanfair Railway Bill appeared for a gauge railway on a similar route; this bill expired unused in 1892.
In 1896, the Light Railways Act was passed, and this spurred further attempts at a railway to Llanfair Caereinion. The first of these was the Llanfair & Meifod Valley Light Railway bill of 1896, which proposed a standard-gauge line from Arddleen about 8 miles north of Welshpool, through the Meifod Valley. In late December 1896, the mayor of Welshpool William Addie proposed a gauge railway called the Welshpool and Llanfair Light Railway. By March 1897, Addie had contracted with noted narrow gauge promoter Everard Calthrop to assist in preparing a case for the inquiry. An application for a Light Railway Order was submitted to the Board of Trade in May 1897. Calthrop proposed the use of transporter wagons, 0-6-0 tank locomotives and a large "Barsi-type" locomotive for heavy market day traffic. At the August 1897 public inquiry Calthrop appeared, along with J.R. Dix manager of the Corris Railway. The enquiry considered by the Llanfair & Meifod Light Railway and the Welshpool and Llanfair Light Railway proposals. The commissioners took their time deciding. Meanwhile, the promoters of the W&LLR had approached the Cambrian Railways to have them pay for and construct the railway. After much time-consuming negotiations, the Cambrian agreed and on 8th. September 1899, the Light Railway Order was granted to begin construction of the line.
Original operations
It was opened on 4 April 1903 to aid economic development in a remote area, never making a profit. It was originally operated by the Cambrian Railways, connecting with it at the former Oswestry and Newtown Railwaystation in the town of Welshpool. The line is built through difficult country, having a great number of curves in order to reach the summit of 600 ft. The original terminus at Welshpool was located alongside the main line station and trains wound their way through the town, using the locomotive bell as a warning. In the 1923 Grouping of railway companies, Cambrian Railways, including the Welshpool to Llanfair Caereinion line, was absorbed by the Great Western Railway. On 9 February 1931 the line lost its passenger service, which was replaced by a bus service, and it became a freight-only line. It was temporarily re-opened to passengers between 6 and 11 August 1945 for the Eisteddfod. The GWR itself was nationalised in 1948 and became part of British Railways. Freight traffic lingered on until 1956, by which time British Railways decided to close the line, with services ceasing on 5 November.
Preservation
A group of volunteers and enthusiasts took the line over and started raising money to restore it. On 6 April 1963 the western half of the line, from Llanfair Caereinion to Castle Caereinion, was reopened as a tourist railway. In 1972 services were extended to Sylfaen. The line through Welshpool, however, could not be reopened, so the line now has a new terminus station at Raven Square on the western outskirts of the town, opened on 18 July 1981. There are current discussions about reinstating the link through the town to the main line station, following a different route from that originally used. Because of the gauge, unusual for British narrow gauge railways, locomotives and rolling stock to supplement the originals have had to be obtained from sources around the world including the Zillertalbahn in Austria. A major grant from the Heritage Lottery Fund permitted restoration of both original locomotives together with several coaches and original wagons, and provision of new workshop facilities, ready for the line's centenary.