In the 1890s the rapidly expanding city of Birmingham, east, viewed the nearby Elan Valley as the ideal source of clean, safe water. This was to change the face of Rhayader forever, bringing thousands of workers involved in building this massive complex of dams and reservoirs to the area. A new railway was built connecting this huge area with the main network in Rhayader, and the construction of a new village to house the workers was built on the banks of the River Elan. Work started in 1894 and the scheme was officially opened in 1904 by King Edward VII and Queen Alexandra.