The Georgetown Railroad was originally constructed in 1878 as a "feeder" line from Georgetown to the main line at Round Rock, Texas. The railroad was operated as a branch of the International & Great Northern (I&GN), which became part of the Missouri Pacific Railroad system until 1958, when continued losses resulted in a Petition for Abandonment.

Following abandonment, the railroad was purchased by a group of Georgetown businessmen for almost the original construction cost. After obtaining a Certificate of Convenience and Necessity to operate again as the Georgetown Railroad Company, the new owners of the eight mile shortline began the construction of a new quarry. They then made plans to capture the aggregate business in the booming Gulf Coast construction industry.

Georgetown Railroad Company proceeded to purchase locomotives and rolling stock to meet the increase in rail shipments from its major customer, Texas Crushed Stone. Today, the Georgetown Railroad has eight (8) switch engines, six (6) road locomotives and over 800 open-top cars. In 1975, a locomotive shop was built to service both Georgetown Railroad and Texas Crushed Stone locomotives. In 1982, a car repair shop was added to handle the inspection and repairs of the car fleet. The car shop is one of the most modern repair shops in service today on a shortline railroad and handles running repairs, wreck repairs and complete rehabilitation of all system and foreign equipment while on the Georgetown Railroad.

The main line was originally constructed with 52 pound (52 pounds per yard) rail which was designed to support railcars with a capacity of 50 tons. As traffic increased and payload doubled to 100 tons, a major track rehabilitation and construction effort was begun. Today the main line contains 132 pound rail, 136 pound rail and over 25 miles of additional trackage. The Georgetown Railroad has its own track department that handles the maintenance of all Georgetown Railroad Company and industry tracks, as well as the construction of new trackage. The track department is mobile and uses the most modern equipment available to keep the physical plant in top shape.