Tradition states that the land on the east side of Verndale was once covered by a shallow lake. It is believed the railroad drained this lake to make track construction easier.

The Northern Pacific Railroad came through the Verndale area in 1872. The first train ran through the settlement in January of that year. In 1875, a log structure was built to serve as a depot for the convenience of incoming settlers. A side track was added in 1878 to "accommodate the needs of the citizens." It was capable of holding 25 railroad cars. In 1881 the side track was lengthened. The double track was laid through town in 1904 and completed in 1906.

Verndale's first "official" railroad depot was constructed by the citizens of the growing community in 1880 and was made of railroad ties. The first station agent was E.N. Smith.

The 1880 depot served the town well for many years. It was replaced by a small, shiny, new, modern structure in 1956. The new depot was 36 feet long and 16 feet wide, and was made of metal panels. It was the first of its kind to be put up by the Northern Pacific. The new depot was built just west of the old structure, which was then moved along US Hwy 10, just east of Wadena and, although extensively remodeled, proudly stands to this day...125 years young!

The new depot served the community for 14 years, when it was terminated by the Northern Pacific Railroad. The depots at New York Mills, Henning, and Frazee were also terminated at that time. In 1972, the new depot also hit the road, this one going east to Staples. It was purchased by Charles Waln and was converted to a garage and repair shop.