Llanidloes and Newtown Railway Waybill 1861
The year 1852 saw two schemes: the Shrewsbury & Aberystwyth Railway and the Montgomeryshire Railway for connecting these towns, each had a different route. The London & North Western Railway intended subscribing to the S&AR, but as a safeguard deposited Bills for a Shrewsbury to Newtown line and the Crewe to Shrewsbury line. This posed a threat to the Montgomeryshire Railway already cut back to Newtown. The people of Llanidloes promoted the Llanidloes & Newtown Railway which received Royal Assent on 4 August 1853, to link up with whatever railway was passed by Parliament . However the other schemes failed leaving the L&NR isolated, which prompted the formation of the Oswestry & Newtown Railway by Act of 26 June 1855 to link the L&NR with the Great Western Railway at Oswestry.
David Davies of Llandinam was awarded the contract for the L&NR, work commenced in October 1855 and was virtually complete late in 1857 when the money ran out. David Davies and his partner Thomas Savin moved on to construct the Vale of Clwyd Railway, and on their return leased the L&NR by Act of 21 July 1859 pending completion of the work. The official opening took place on 31 August 1859.
The L&NR agreed to build a new station at Llanidloes for use by the Mid-Wales Railway, Manchester & Milford Railway and itself, and a connecting line to Penpontbren Junction where the M&MR turned towards Llangurig.