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At the start of the 20th century, river navigation was still the primary mode of transport in Lismore, with the North Coast Steam Navigation Company being the major operator on the Richmond River (now Wilsons River). The dairy industry, which employed hundreds of small family-owned operations, was booming, positioning the Lismore region as the hub of dairy production and the richest dairy district in Australia.
The Lismore Railway Station, opened in 1894, became a crucial part of the region’s transportation network, linking the city to the coastal town of Byron Bay and further inland to Casino by 1903. However, the development of better road networks and the rise of motor transportation gradually diminished the reliance on river and rail transport. River traffic was further affected by the requisitioning of ships during World War II, and the North Coast Steam Navigation Company, the largest operator on the Richmond River, went into liquidation in 1954.
Despite these setbacks, Lismore's economy continued to thrive. The city saw the construction of important cultural and infrastructure projects, including the opening of a new School of Arts in 1907 (destroyed by fire in 1932) and the establishment of new churches for various denominations. The dairy industry was further boosted with the opening of a new Norco factory in 1931, a dairy farmers' cooperative, solidifying the city’s role as a dairy production powerhouse.
Lismore’s reliance on rail transport ultimately came to an end in 2004 when the Murwillumbah rail line, which had been in operation for over a century, was closed due to economic reasons. This marked the end of 110 years of rail transport in the region, but the city continued to evolve, transitioning towards a modern infrastructure supported by motor transport and a diversified economy.