 Opening its line in 1904, the Tanat Valley Light Railway Company was in the hands of the receiver continuously from that year., as its income did not enable it to pay the interest on loans.The Cambrian Railways subsidised it, but by 1921 it was obvious that improvements to the track and bridges were required, and this was beyond the financial resources of the bankrupt company.Takeover by the Cambrian was the only way out, and this was authorised by Order of the Light Railway Commissioners.