In 1890 the Department of Works and Railways was separated into the Department of Works and Buildings and the Western Australian Government Railways (WAGR). Its headquarters were located in Perth. The network had stations in Perth, Kelmscott, Cannington and Welshpool. These lines were primarily opened to service the wheatbelt – an area which reaches north from Perth to the Mid-West region, and east to the Goldfields-Esperance region. In 1914 the function of tramways was added and the Department's title changed to Western Australian Government Railways and Tramways.

The Western Australian Government Railways, Tramways & Ferries was abolished in 1949 and its functions dispersed into two new bodies, Western Australian Government Railways (WAGR) and Western Australian Government Tramways & Ferries. In September 1975, the WAGR adopted the trading name Westrail and created a logo. However, the official name of the WAGR was not changed at this point. The name Westrail was created simply to improve the company’s image. The new company headquarters were the Westrail Centre in the Perth terminal.

On 17 December 2000, the Western Australian Government Railways (WAGR) freight division was sold to the Australian Railway Group along with the Westrail name and logo. The WAGR continued to operate as the Western Australian Government Railways Commission, until it was absorbed by the Public Transport Authority in 2003.