Caption: Initially service over the portage was provided using buckboards to convey passengers and cargo. A portage railway from Peninsula Lake to Lake of Bays was proposed by the Huntsville and Lake of Bays Transportation Company and in 1900 the Huntsville and Lake of Bays Railway Company was incorporated by a separate charter to build an electric or steam railway, over the portage.In 1900 the Huntsville and Lake of Bays Transportation Company changed its title to Huntsville and Lake of Bays Navigation Company. In 1902 this company was dissolved and a new charter was obtained as the Huntsville and Lake of Bays and Lake Simcoe Navigation Company Limited.Work had not commenced on the portage railway by this time, although its charter stipulated the undertaking was to be started within three years and completed within seven. The Navigation Company took on the task of building the railway, starting in September 1902. Trains were operating after the close of navigation season in 1904, however, passenger service over the line was not available until 1905. The railway ended up as narrow gauge because rolling stock was purchased second hand from E.B. Eddy of Hull, Quebec.