The area became hugely popular with the establishment of a railway station in 1876. It was first called 'Crushers' but was changed to Katoomba a year later. From this point it was a popular holiday resort providing excellent bushwalking, delightful views over the valleys and gracious hotels. By 1889 the Illustrated Sydney News was able to describe Katoomba as 'a town which is practically the outcome of public appreciation during the past four years. The summit of one of the highest points about the Blue Mountains is covered with a cluster of houses, amongst which are many handsome residences with The Carrington conspicuous in the centre.
Substantial shops line the main street, and everywhere are evidence of progress and prosperity.
While it remained the centrepiece of Katoomba, it was really during the 1920s and 1930s that The Carrington acquired its reputation. The hotel's visitors included royalty - the Prince of Wales stayed in 1920 and the Duke and Duchess of York in 1927. It was during this time that it became known as the 'Honeymoon Capital of Australia'. As Katoomba grew as a holiday destination so it's coal mining fortunes declined. The coal mine closed in the 1920s although the spectacular railway to the mine has remained open and is now a popular tourist attraction.