The Township of Capreol was chosen for the new railway junction out of convenience. On the Canadian Northern Transcontinental Line, there had to be a divisional point every 125 miles along the track and Capreol was the most logical spot for one. Aside from blackflies and harsh winters, Capreol did not have much to offer to its new settlers, however, a close-knit community slowly began to develop around the railway. By 1915, the railway station was opened for business. Like most divisional points, the Capreol train yard included repair shops, a coal chute, a water tower, enough track capacity so that switching could take place, and a roundhouse which accommodated eight pits.
In the early days, a bunkhouse was built behind the locomotive roundhouse to provide accommodation for the workmen. Many families lived in boxcars (which were preferable to tents) that were often shunted from place to place in the yard. These were considered temporary quarters until homes could be built.
Businesses were soon being established, including a general store, a drugstore, a post office, and a bank. The main road was merely a trail, which started at the train station and led eastward, following the river's course. In the winter, a huge wooden roller, drawn by the town's team of horses, packed the roads down. This gave the horse-drawn sleighs and pedestrians better footing than the knee-deep snow that resulted from frequent storms.
In 1918, with a population of 500 people, Capreol was officially incorporated as a town.