CPKC Mud Creek Arch

In 1864, the Minnesota Central Railway began construction of a new railroad between Mendota, Minnesota and Faribault, Minnesota.  The line would be completed between Mendota and Fairbault in 1865, and would be extended to Owatonna in 1866.  In 1867, the McGregor Western Railway would extend the line through Austin, Minnesota and towards Cresco, Iowa; connecting to an existing line extending to McGregor, Iowa.  The Minnesota Central conveyed the Mendota to Owatonna line to the McGregor Western Railway Company in 1867, which in turn was purchased by the Milwaukee and St. Paul Railway Company (M&StP).  In 1874, the M&StP would change its name to the Chicago, Milwaukee and St. Paul Railway Company (CM&StP) in 1874. Known as the Milwaukee Road, the railroad was beginning to amass a large collection of railroads throughout Wisconsin, Minnesota and Iowa.

This line served as a secondary mainline, bypassing the congested mainline along the Mississippi River.  The Milwaukee Road was often in financial trouble, especially after the costly Pacific Extension was completed in 1909. In 1925, the company declared bankruptcy, and reorganized as the Chicago, Milwaukee, St. Paul and Pacific Railroad in 1928.  As the Milwaukee Road continued to struggle in the 1970s and 1980s, portions of the railroad would be abandoned.  The line between Austin and Cresco would be abandoned in 1983.  By 1985, a suitor for the Milwaukee Road was being sought, and the Soo Line Railroad, controlled by Canadian Pacific Railway (CP) purchased the Milwaukee Road in 1986.  In 1997, CP would sell the Austin to Comus segment to I&M Rail Link, which was purchased by the Dakota, Minnesota & Eastern Railroad (DM&E) subsidiary Iowa, Chicago & Eastern Railroad (IC&E).  The DM&E/IC&E were purchased by Canadian Pacific in 2008.  CP merged with Kansas City Southern Railway in 2023 to form CPKC, the current owner of the Mendota to Austin line.  Progressive Rail operates portions of the line in Faribault and Inver Grove Heights, while much of the line between Faribault and Owatonna is out of service.