the fairhaven and southern was incorporated november 27, 1888. work on the road began in 1889 in fairhaven, washington, now part of bellingham. the line was surveyed towards lake samish towards what is now sedro-woolley, washington. the line reached the coal mines in skagit county in 1890, and began operating on a partial line february 1, 1890. that initial line was completed june 28, 1890, running from fairhaven to sedro and, according to an early timetable, completing the trip in 50 minutes. the icc lists it in june 1890 as in operating independent with of track.