It is on the edge of the village of Llynclys, just south of Llynclys station, on the other side of the B4396 road. During the original commercial operation of the line the site was used for goods handling.
The station was built as an alternative to the original Llynclys station, which has become a private house. Work on the South station began in 2004 and opened to the public in 2005. The Trust currently keeps the bulk of its rolling stock here, on a number of sidings, and a new carriage shed is set to be built after having gained planning permission in 2007.