Terang opened as the terminus of the line from Camperdown. On 4 February 1890, the line was extended to Warrnambool. During the first year of operation, the station sold 11,510 tickets to Camperdown, for a total revenue of £11,157."Terang Railway Station", The Camperdown Chronicle 15 August 1888 page 3 At the peak of operations, the station had a four road yard. Today, it has a single dead end siding.
