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The Dean Forest Railway Society, which acts as a support organisation for the railway, was originally formed in 1970 to preserve the Lydney to Parkend branch line. Operations at that time were centred on Parkend as British Rail had not set a date for closure.
The first Steam Open Day took place in October 1971, with Peckett locomotive Uskmouth I hauling brake van rides over 200 feet of siding. Members were soon keen to shake off a reputation as being the "World's Shortest Passenger Railway!"
With no immediate prospect of British Rail relinquishing ownership of the branch line and restricted by the space available at Parkend, the Society decided to seek alternative accommodation, eventually identifying land next to the branch line at the former Norchard Colliery. Together with land vacated by West Gloucestershire Power Station, this site had all the potential to become the Railway's centre of operations.
Norchard, as it would continue to be known, was acquired in 1974 and a lot of hard work followed before it was possible to stage the first open day in 1978. This time the length of running line was some 150 yards and not long afterwards more track was laid allowing push-and-pull trains to operate to Middle Forge, a distance of some 450 yards.
A period of consolidation followed during which time the running line was extended twice more, first to Goatfield Curve and then to Thomas's Yard (just short of the main A48 level crossing). Train services finally crossed the main road in 1991 to terminate at St. Mary's Halt (then known as Lydney Lakeside).
Visits by HRH The Duke of Gloucester in 1983, the GW150 Exhibition Train and the Broad Gauge loco Iron Duke in 1985, and by various film crews and TV personalities all helped enhance Norchard's reputation. British Rail finally announced closure of the line to traffic in the early 1980's and this decision enabled DFR to complete the purchase of most of the track and land in 1985.
It later went on to buy part of the redundant Lydney Junction site, situated adjacent to the town's station on the Gloucester to Newport/Cardiff main line, and to successfully apply for a second Light Railway Order to complete the link from the Junction to Parkend. It was to be 1995 before the former Severn & Wye station at Lydney Junction could be opened to DFR passenger trains. The junction site also provides the potential for additional preservation projects.
Lydney Town station, just yards from the main A48 in the town, opened in April 2001.
In 2006 Parkend Station was re-opened to the first regular passenger trains since 1929 and the DFR returned to its birthplace.
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