Both the Severn and Wye Railway and the Coleford Railway schemes were authorised on the same day: the Coleford Railway was thus incorporated by Act of Parliament of 18 July 1872, with authorised capital of £66,000. It was to be 5 miles 20 chains in length. Davis says a second Act was required: An Act of July 18, 1872 authorised the construction of the Coleford Railway from Wyesham to Coleford. These powers were not exercised, and the Coleford Branch was built... under an Act of 1875.The Coleford Railway followed the route of the Monmouth Tramroad for part of its route, but included several deviations to eliminate the sharp curves that were unsuitable for main line railway operation. The railway included four tunnels over its route, but there was only one intermediate station at Newland.

Closure

Throughout its operating life the line never really fulfilled the hopes expected of it and it was closed on 1 January 1917. Shortly afterwards most of the track was lifted and the rails were taken to France in connection with the exigencies of World War I. Whitecliff Quarry continued to be productive, and its output was conveyed over 71 chains of the Coleford branch, and through the sidings at Coleford, requiring four reversals, and on to the former Severn and Wye system.

After the main railway operations had ceased, the tunnel at Newland was taken over for the cultivation of mushrooms. Ammunition was stored here during World War II, and Newland station was requisitioned by the Air Ministry as their local headquarters with the signal box becoming the guardroom. In connection with this military presence the two tunnels at Redbrook were also used as ammunition stores after the ends of both structures had been securely bricked up.The line from Whitecliff Quarry to Coleford continued in use for the transportation of limestone until 1967, after which date there was no railway activity on the line.