With the original plans having been dropped, and a railway on this route still desired, the new Temiskaming and Northern Ontario Railway was incorporated on 17 March 1902, by the "Temiskaming and Northern Ontario Railway Act" of the Ontario parliament. The railway was to be a provincial Crown corporation overseen by the Temiskaming and Northern Ontario Railway Commission. Construction on the railway started in 1903, and the settlement of Redwater in the municipality of Temagami began as a small request stop when the railway reached the area of the Lower and Upper Redwater Lakes.