The halt was not an original station of the Severn and Wye Railway and was opened by the Dean Forest Railway on 8 September 1991. It was originally named Lydney Lakeside, taking its name from the lake behind the platform. From 1991 to 1995 it was the original southern terminus of the Dean Forest Railway prior to the reopening of Lydney Junction in 1995. It was later renamed St Mary's Halt in 1995 - which takes its name from St. Mary's Church, located opposite the platform. The halt was closed to passengers after the 2013 season, but was still used for the operation of the Bypass crossing until January 2016, when the crossing was automated. It will be removed within the foreseeable future for re-use elsewhere on the line.