The Cape Fear and Yadkin Valley Railroad Company (CF&YVRR) opened in Fayetteville in 1879 as a reorganization of the former Western Railroad, which connected Fayetteville with the Egypt coal mines to the northwest. The depot opened in Fayetteville in 1890, the same year the railroad was connected with Wilmington.

The result was a northwest to southeast railroad connecting Mt. Airy, Greensboro, and Wilmington, with connections into South Carolina. The depot was one of the many buildings owned by the CF&YVRR. Others included repair shops, foundries and freight houses. The depot is Romanesque Revival in style, incorporating large brick arches and arcades to accommodate passengers and freight handling.

The brick in the building was manufactured by E. A. Poe, a prominent local manufacturer. Other notable features include an onion-shaped lightning rod and steep hip roof.

The facility is slated for a full refurbishment by Spring of 2003 and will house a transportation museum. This project was made possible through a grant from the North Carolina Department of Transportation with matching funds from the City of Fayetteville and other local organizations. Construction is slated to begin in the Spring of 2002.