Diamond Match Co. established the Butte Co. Railroad in 1902. The So PAC tracks ran between Chico, Durham, and Stirling City, and regular train service between Chico and Magalia began on Nov. 2, 1903, soon followed by completion of the Magalia depot. By April 8, 1904, lumber and passengers were being transported from Stirling City. After financial setbacks, Diamond Match turned the line over to Southern Pacific in 1915. The Stirling City sawmill closed on Jan. 31, 1958, and the last train ran on Feb. 5, 1958. Train operations were irregular until the Stirling City stud mill reopened in Feb. 1964. Trains ran regularly until May 1974, when the mill closed permanently, and the tracks remained abandoned until they were turned up in 1979.