Origins and Early Operations
The Daylesford railway line was originally constructed by Victorian Railways in the late 19th century. It opened in two stages: from Carlsruhe to Trentham on 16 February 1880, and from Trentham to Daylesford on 17 March 1880. The line quickly became a vital transport link for both passengers and freight, with over 50,000 passengers using it in 1884 alone. However, over the decades, usage declined due to competition from road transport and deteriorating infrastructure[1].

Closure and Decline
By the 1970s, the railway was struggling to remain viable. The last passenger service was discontinued in 1978 and replaced by road coaches. The line was officially closed, and much of the infrastructure was dismantled. This marked the end of nearly a century of continuous rail service in the region, leaving the community without its historic rail connection[1].

Revival as a Tourist Railway
In 1980, the Central Highlands Tourist Railway was formed by volunteers with the goal of restoring the line. Restoration efforts began in the mid-1980s, and by 1990, services resumed between Daylesford and Musk. Further restoration extended the line to Bullarto by 1997. The organisation rebranded in 2002 as the Daylesford Spa Country Railway, reflecting its new identity as a heritage and tourist attraction[1].

Challenges and Restoration Efforts
A major setback occurred in February 2009 when bushfires destroyed 1.6 km of track through the Wombat State Forest. The damage included thousands of sleepers and rare cattle pits. Restoration cost an estimated \$250,000. Services resumed to Musk in 2010 and were fully restored to Bullarto by December 2013. These efforts highlighted the resilience and dedication of the volunteer team[1].

Living History and Museum Status
Today, the Daylesford Spa Country Railway operates as both a tourist railway and an accredited museum under Museums Australia’s MAP program. It offers “living history” experiences, allowing passengers to relive the sights and sounds of Victorian Railways branch line travel. The railway preserves and interprets historical railmotors, infrastructure, and practices, making it a unique cultural and educational attraction in regional Victoria[2].

This historical summary was generated using artificial intelligence and is based on publicly available sources, including Wikipedia and the official Daylesford Spa Country Railway website.