The station was initially noted as being at the end of a short stub off the two main lines following the opening of the route northwards, but a replacement through station was authorised by the S&D in September 1856; this was subsequently built and commissioned but the precise opening date was not recorded. This only had the one (reversible) platform on a loop off the main line – a configuration that was used in several other locations on the S&D system (e.g. , and Bishop Auckland itself), with a sizeable goods yard nearby that served the adjacent Pease's West Colliery, coke ovens, fire clay works and chemical plant. Another route to the town - the Deerness Valley Railway from Durham via Waterhouses was completed in January 1858 – this joined the WXR route just north of the town and was constructed by the S&D at the behest of Joseph Pease, whose company owned the colliery & associated Bank Foot industrial complex opposite the station. This route though was only used by goods traffic, as passenger trains terminated at Waterhouses throughout the line's existence (final closure occurring in December 1964).
