The tracks on which the Verde Canyon Railroad runs were opened in 1912 as part of a north–south branch line linking a copper smelter at Clarkdale and the copper mines at Jerome to Santa Fe Railway tracks passing through Drake. The Santa Fe Railway owned and operated the 38-mile (61 km) branch line from 1912 to 1988.
David L. Durbano bought the branch line in 1988. Passenger service between Clarkdale at milepost 38 and Perkinsville at milepost 18, resumed in 1990 under the name Verde Canyon Railroad. Milepost 0 of the AZCR is at Drake, where the line meets the BNSF Railway system. The AZCR track to Drake is still used for hauling freight even though the excursion line stops at Perkinsville.
Excursions involve a 4-hour, 40-mile (64 km) round trip from Clarkdale to Perkinsville and back. Scenes from How the West Was Won were filmed at Perkinsville in 1960s. The route follows the Verde River, crossing bridges and trestles, and passes through a 680-foot-long (210 m) curved tunnel. Between milepost 30 and Perkinsville, most of the land along the railroad right-of-way is in the Prescott National Forest or the Coconino National Forest (across the river).
The railroad carries about 100,000 passengers per year. In 2005 the Verde Canyon Railroad celebrated its one-millionth passenger, and the following month was named an "Arizona Treasure" by Arizona Governor Janet Napolitano.
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