Incorporated on 14th August 1885. A line planned to run 6 miles between Newchurch and Chale. The line was re-named the Newport, Godshill and St. Lawrence Railway in 1889, and these original lines were abandoned and replaced with an entirely new route from Merstone to St. Lawrence Shute. The company amalgamated with the Isle of Wight Central Railway in 1913.
Capital £60,000 in shares of £10 each. Loans of £20,000. Increased for extensions in 1887 by £24,000 and £8,000 respectively. Capital following 1889 and 1892 Acts was £102,000 in shares and £34,000 in debentures.