This is where the little engines collect their trains. After a hard day's work, they come to the depot and sleep in the sheds. They sometimes rest in the sheds during the day. 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 here and Mr. Percival's House is located just opposite. Lots of coaches and wagons have been kept here and the depot is usually quite busy. Since the sixteenth season, a standard gauge line which was a part of Stepney's Branch Line has been added and runs through the depot.
Previously, the little engines used to rest and sleep at Crovan's Gate sheds, their rolling stock was also kept there. However, when the number of engines and rolling stock on the Skarloey Railway increased, the sheds and yard were becoming a bit too small. So the depot was made to accommodate all the little engines, and their rolling stock.
- 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.