In 1890 the railroad came to Waldwick to establish a base of operations because the city of Paterson had levied a tax on water, a key component of its operating costs. The tower was constructed to manage movement within the yard as well as all mainline traffic from just north of Ridgewood to Mahwah. The tower has been rehabilitated to house a museum focused on those who worked for the railroad and on the railroad as a business. Restoration projects from 2004 to 2014 were assisted by grants from the Bergen County Historic Preservation Trust Fund, part of the Bergen County Open Space, Recreation, Floodplain Protection, Farmland and Historic Preservation Trust Fund.