Lumsden also used to be a major railway junction with lines departing to all four points of the compass. The
Kingston Branch from Invercargill ran north–south through the town, while to the west was the
Mossburn Branch and to the east was the
Waimea Plains Railway that connected with the
Main South Line in Gore. In 1971, most of the Waimea Plains Railway closed, but sixteen kilometres from Lumsden to Balfour remained open until 1978. In 1979, the line north to Kingston was closed after repairs to flood damage would not have been economic, and both the Mossburn Branch and the connection south to Invercargill closed in December 1982. The railway station is now preserved as a tourist information centre. The
Lumsden Heritage Trust, formed in 2013 has recovered and restored original carriages and trains. It has displayed the chassis of
New Zealand Railways steam locomotive P 60 at the town's southern entrance, as well as two unrestored locomotives,
V 126 and V 127, two
Drewry diesel shunters and three wagons by the old station, to commemorate its former prominent status in New Zealand's
national rail network. In April 2022 a historic 1883 A Class 199 elevated roof passenger carriage was added to the Lumsden Railway precinct. ==Demographics==