The opening of the Hills railway and the building of the station was a catalyst for development in the area. The next twenty years saw the surrounding valley change from open Australian 'bush' to a more European landscape. The building of large "summer" homes and residencies with carefully tended gardens slowly replaced earlier land uses such as market gardening. The mature gardens that characterise the area today are a legacy of this period.

Later years saw the use of many of these larger buildings change to meet demand for holiday accommodation and they became guest houses.

It is this era that the new use of the Mount Lofty

Railway Station recreates.

In 1987, regular passenger services ceased and the property began a gradual decline towards becoming neglected and derelict. Structural restoration was performed as part of a Commonwealth training scheme in 1994 and the interior underwent an extensive refurbishment for its present use in 1999.

The architecture is a representative design used widely throughout the South Australian Railways' system during the latter part of the 1800's. The type of construction, from local stone with brick or stone quoins, can also be seen throughout the district.