In the Act of 1853, the Sodor and Mainland Railway gained power to build a line from Cronk, but this never happened and fell through as the railway was becoming increasingly bankrupt. The Mid Sodor Railway was the result of this failed attempt. However, in 1923, the Peel Godred Power Company was granted permission to build a dam and hydro electric power station one mile north from the town. To supply it, a branch built by the newly formed North Western Railway was constructed from Killdane, with the power company paying half of the construction costs. The line's opening immediately caused a decrease in traffic on the Mid Sodor Railway, resulting in its closure. The eventual electric traction was supplied by the power station.