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The line was opened on 31 October 1927, to serve soldier settlers in the area. Although it was about 5 miles (8 km) from Peechelba, on the other side of the Ovens River, the terminus was originally named Peechelba. The Country Roads Board and three local shires contributed to the cost of a bridge linking Peechelba with the new station, renamed Peechelba East in March 1948. The line was closed to all traffic in December 1986, along with many other lines elsewhere in the state.