From the opening of the Chipping Norton branch and the Bourton-on-the-Water branch, their alignment on the map encouraged ideas of forming a trunk railway. Iron ore from the East Midlands was in demand in South Wales, as ores of differing qualities were required for mixing there. These facts led to the Great Western Railway promoting its Banbury and Cheltenham Direct Railway. The part of this line from Bourton-on-the-Water to Cheltenham opened on 1 June 1881. This was followed by the extension of the Chipping Norton branch to King's Sutton, near Banbury, opening on 6 April 1887. Additionally there were ironstone workings on the course of the new line.