Construction of a narrow-gauge railway began in 1904, initiated by Sir Adamjee Peerbhoy. The 21-km line from Neral to Matheran was built by hand, a challenging task due to the steep terrain. Workers carved the route manually, completing the project with significant effort.

The railway was powered by four German steam engines from 1907 until 1982. To encourage visitors, Peerbhoy also developed accommodation and facilities in the area.

This historic mountain railway remains a notable heritage attraction, with its construction and history making it a significant point of interest, and more details are available from the source.