The terminus at Peel was located on the east quayside at the mouth of the busy harbour and was originally furnished with a wooden structure with corrugated iron roof as was commonplace in the early years of the railway.  Its location in the lower part of the town ensured that it was regularly used for goods traffic and passengers alike. Its popularity in the earliest years of the railway saw expansion and improvements, such as the addition of raised platforms in 1909 and provision of further goods sidings.

The original station building was replaced in 1908 by a much more substantial stone-built affair, featuring the distinctive local red sandstone; this new edifice contained the station master's accomodation as well as porter's rooms, booking hall and waiting room facilites. A little later it was joined by a goods shed with platform in similar style and a water tower was erected, with locomotive shed at the mouth of the yard.