In the 1870's, a flurry of railroad building in the county ushered in the next major development at the waterfront. Previous to this time Ithaca's growth had slowed; the population weathered the 1837 depression, a major flood in 1857, and the Civil War (although the civil war brought increased traffic to the shipping and boat building concerns at the Inlet). Cornell was inaugurated in 1868. Many of the buildings of the central commercial blocks in downtown Ithaca were under construction.

Ithaca still had one train in 1870, the Ithaca and Owego Railroad that began in 1834. After the 1837 Depression, the Ithaca & Owego Railroad was sold, to become the Cayuga and Susquehanna in 1842. The C & S extended the terminal to Steamboat Landing in 1849, and, in 1851, the company changed the track from the inclined planes to a southhill switchback. At this time, a connection at the southern end with Pennsylvania allowed for a complete train link to Ithaca, carrying coal that was then shipped further north on barges. Thus began this railroad's most profitable period. It became the Delaware, Lackawanna and Western in 1855.

A view from West Hill shows the railroad trestle and Steamboat Landing beyond it.

At the beginning of the 1870's, many new railroads were built. The Ithaca and Athens Railroad opened in 1871, its line competing with the D, L & W. The Ithaca & Athens traveled along Inlet Creek, south via Newfield and provided faster service to Pennsylvania. On the east side of the Inlet heading north, the new Cayuga Lake Railroad provided a connection to Cayuga Village by 1872. The Cayuga Lake Railroad created a complete rail connection via Ithaca from Philadelphia to Buffalo (as the New York Central line was met at Cayuga Village). In 1873, the Geneva & Ithaca opened on the west side of the Inlet heading north. However, due to a financial crisis later that year, both the Geneva & Ithaca, and the Cayuga Lake Railroads were sold. Eventually, all these railroads became part of the Lehigh Valley Railroad System by the end of the decade. (Lehigh Valley is how most people today would recognize these railways.) Only the D, L, & W remained outside the Lehigh Valley system.

What did this all mean for the Inlet?

Train yards and depots altered the landscape, both on the east side with the D,L, & W, and on the west side with the Lehigh Valley yards. There were many spurs to the railroad tracks at the Inlet terminals. A trestle was built along the west side of the Inlet to meet barges across from Steamboat Landing (see photo). The Inlet was very busy with the railroad operations. In addition, in 1873, nine boatyards, three coal yards, two planing mills, a lumber yard, a hotel, a brewer, a dealer in lime and plaster, a shoemaker and a tinner were in business there. New services for workers and passengers were built. The Lehigh Valley House, which remains today as the best representation of a railroad hotel in Ithaca, was built in 1878.

A turn of the century view of the Lehigh Valley Station. Built in 1895, it is now the Station Restaurant.