The Cavan, Leitrim & Roscommon Light Railway & Transport Co was formed in 1883, and in 1887 opened a 54 km long 0.914 m (3 ft) gauge line linking the railway from Dublin to Sligo at Dromod with the main line of the Great Northern Railway (Ireland) at Belturbet. A branch from Ballinamare to Arigna was opened the following year and extended to the coal mines at Arigna in 1920. Cattle traffic, once important on the railway, but was reduced by Partition in 1922, and coal traffic diminished during the 1950s.
The line was closed in 1959, but a museum was established in the former narrow gauge station at Dromod in 1993. The engine shed and water tower have been restored and the collection includes steam and diesel locomotives, rolling stock, aircraft, vintage buses, fire engines and military vehicles, and visitors are able to ride over a short section of narrow gauge track. Two of the original 4-4-0T locomotives, supplied to the company by Robert Stephenson & Co in 1887 have been preserved, No 2 at Cultra Manor, Belfast, and No 3 at the New Jersey Museum of Transportation.