Charles Gregory surveyed a site for the Capella township in 1862. Capella grew into a small settlement that was mainly used as a resting place for travellers on the Rockhampton - Peak Downs Road, until much growth was triggered after the first train arrived via the new railway line on 4 December, 1882.
Rail sidings were built along the railway line as it was extended toward Clermont. In 1988 the Nanya railway siding waiting shed was moved to the Village from its former site on the Emerald - Clermont line, some 35kms north of Capella. This small weatherboard building was used by passengers waiting to catch the train to town, as well as a pick-up point for nearby properties’ mail and to dispatch or receive orders of food and freight.
In 1989 Queensland Rail donated a guard’s van - Number BLV 821. The Village also holds a Fairmont Quad fettlers trolley with trailer, signals, fettler's hut, and other railway memorabilia in its rail collection.