Llanidloes was now the southern termination of the lines in the area, but two ambitious schemes to connect to Llanidloes were in hand. On 1 August 1859, the
Mid-Wales Railway was authorised by the
Mid Wales Railway Act 1859 (
22 & 23 Vict. c. lxiii). This scheme had been radically cut back during the Parliamentary hearings; only a few months previously its promoters called it "the Mid-Wales section of the Manchester, Liverpool, Swansea & Milford Haven Junction Railway," but it was authorised from Llanidloes as far as
Newbridge-on-Wye only, passing through
Rhayader. The authorised line was not what the Mid-Wales proprietors wanted, and in 1860 they returned to Parliament. This time they were more successful, and the
Mid Wales Railway (Extensions) Act 1860 (
23 & 24 Vict. c. cxxxiii) was passed on 3 July 1860. This confirmed the previous year's approval, and extended it to
Three Cocks, giving access to
Brecon and
Merthyr. Later that month, on 23 July 1860, the
Manchester and Milford Railway was authorised to build a line south from Llanidloes through
Strata Florida,
Tregaron and
Lampeter to
Pencader. Unnoticed at the time was that the authorised route southward out of Llanidloes was nearly identical for the Mid-Wales Railway and the Manchester and Milford Railway. After some argumentation, this difficulty was resolved by the Llanidloes and Newtown Railway undertaking to build the duplicated section of line, granting running powers over the line to both companies, and, it hoped, to build a joint station at Llanidloes. This was authorised by the
Llanidloes and Newtown (Mid Wales and Manchester and Milford) Railway Act 1862 (
25 & 26 Vict. c. clxii) of 17 July 1862. The point of divergence of the two routes was near Penpontbren Farm, nearly south of Llanidloes station. The Manchester and Milford Railway constructed its line from the southern extremity, northwards, and the process was slow due to money shortages. The Mid-Wales Railway too was subject to cash problems, but most of its line from Penpontbren to
Rhayader was made ready by March 1863, despite the difficult terrain. a distance of a little over from Penpontbren, in February 1864. In that month, an M&MR goods train reached Llangurig. Most of the Mid-Wales Railway was opened on 23 August 1864. The Mid-Wales Railway and the Manchester and Milford Railway were obliged by the agreement to pay 5% interest on the L&NR construction cost of the line to Penpontbren. Moreover the new station at Llanidloes was to be joint between the three companies, with operating and maintenance cost, as well as interest at 5% on construction cost, shared equally between them. The situation was only resolved when the
Great Western Railway leased the M&MR in 1911. The track provided for the M&MR from Llanidloes to Penpontbren was unused for many years, until in July 1872 Penpontbren Junction was commissioned, the section now working as a double line. In 1879 all traffic worked over the down line, for reasons not recorded. The
Llangurig branch, as it had become, was lifted in 1882, with a short section of the branch being retained as a siding. has a slightly different account: ==Consolidation==