The Norfolk and Western Railway was organized in 1881 from the Atlantic, Mississippi, and Ohio Railroad. Primarily a line carrying agricultural products at its inception, the Norfolk and Western rapidly became associated with the mineral development of the southwestern part of Virginia and West Virginia. In 1881 it acquired the franchises to four other lines: the New River Railroad, the New River Railroad, Mining, and Manufacturing Company, the Bluestone Railroad, and the East River Railroad. These companies became the basis for Norfolk and Western's New River Division, which ran to the coalfields to the west.

Much of the early history of the Norfolk and Western Railway can be written in terms of expansion and consolidation with other lines. In 1890, it acquired the Shenandoah Valley Railroad, which ran from Roanoke, Virginia, to Hagerstown, Maryland. By 1891, an Ohio extension was well underway, giving the railroad access to the industrial Midwest. In 1892, Norfolk and Western leased the Roanoke and Southern Railroad, connecting Roanoke with Winston-Salem, North Carolina, and in 1893 it leased the Lynchburg and Durham, connecting Lynchburg with Durham, North Carolina. But this program of expansion, coupled with the economic depression of the 1890s, forced the railroad into receivership in 1895. It emerged as the reorganized Norfolk and Western Railway the next year.