The company had continually been at odds with a number of groups in Simcoe County, especially those in Barrie who continually pushed for an expansion of the line into the downtown area. This was eventually solved through the late 1869 formation of the Toronto, Simcoe and Muskoka Junction Railway, or Muskoka Branch, which branched off at the Allendale station and ran north-east to Orillia and then on to Lake Muskoka outside Gravenhurst. The line was officially absorbed into the Northern in 1875.