The line was built in the late Victorian era in response to increasing demand for transportation down Groudle Glen brought on by the introduction of the Manx Electric Railway.
One of the main draws to the area today is that Groudle Glen has its own heritage railway nearby, the Groudle Glen Railway, which was built in 1896 to serve the zoo which had opened 1893 on the outer edge of the glen.
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Groudle Glen Station is the first mandatory stopping point and major station on the Manx Electric Railway which serves the village of Groudle Glen in the Isle of Man, and is situated between Groudle Lane and Eskadale on the route to Laxey and Ramsey.
The station can be accessed by foot, climbing the footpath from the nearby Groudle Beach or from above, using the old pack-horse road which now provides limited vehicular access for the railway's staff, largely for delivery purposes.
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Directly opposite the station is the now closed Groudle Glen Hotel which was built upon the arrival of the railway in 1893 and designed by the renowned architect Baillie Scott.