The NSWRTM was established in October 1962 with 62 members. A survey of potential sites around Sydney found Enfield Locomotive Depot to be the most suitable and in 1963 a successful submission was made to the Department of Railways. Under the arrangement the department would retain ownership of the locomotives and rolling stock and responsibility for their maintenance. As Enfield depot was still active, exhibits were sent to Enfield for storage but not able to be accessed. In 1967, the Department made an area adjacent to Petersham station available to the museum. The first locomotives outshopped were 3526 and 3609 painted blue and green respectively.