Incorporated on 6th August 1861. A 19 mile line connecting the Great Southern and Western Railway with the River Shannon. The line was not completed until 1884, and was re-named the Clara and Banagher Railway in 1880. It was vested in the Great Southern and Western Railway in 1895.

Capital £115,000 in £10 shares. Loans of £38,300. £50,000 in shares cancelled and issued at 5% preference in 1866.