Construction on the OC&E Railroad (also known as the Klamath Municipal Railway) began in the summer of 1917 as part of a grand scheme to connect Central and Eastern Oregon with rail lines and take advantage of timber opportunities.
Southern Pacific and Burlington Northern (and their pre-merger railroads) operated the line jointly from 1925 until 1974, when it was purchased by Weyerhaeuser, who solely operated the entire railroad in support of its timber operations.