It is the main area where the Skarloey Railway engines sleep and collect their trains. The sheds consist of two brick sheds, one single lined, one double and a double lined open wooden shed. There is also a goods station at the depot and Mr. Percival's House is located opposite. Lots of trucks have been kept here and the depot is usually quite busy. Since the sixteenth season, a standard gauge line which is a part of Stepney's Branch Line has been added and runs through the depot.
- In Blue Mountain Mystery and the sixteenth season, the open wooden shed section was repainted green, but returned to its original brown livery in the eighteenth season.