Chartered in 1857 to build a line from the Delaware Railroad at Harrington toward the Atlantic coast. It was a subsidiary of the Old Dominion Steamship Company. Reached Milford (8.3 miles) by 1859 but further construction was put on hold until after the Civil War. Work resumed in 1867, and the line was completed to Lewes, via Georgetown, by 1869, with service opening to Rehoboth Beach in 1878. The entire route (Harrington to Rehoboth Beach) was 43.8 miles long.