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Ivanhoe station opened on 19 August 1925 when the line was extended from Trida. It served as the terminus of the line until 7 November 1927 when it was extended to join with the line from Broken Hill.
The main town is located approximately three kilometres north of the station and from the original opening of the line a separate railway town was constructed adjacent the station to service the railways needs. Workshops, worker houses, locomotive depots, track maintenance depot, crew barracks, fuelling point and the station were all built. The railway town has now largely been taken over by the Ivanhoe Gaol.