The GWR on reaching Wolverhampton Low Level railway station in 1854, had built their own broad gauge shed on the opposite side of the Stafford Road to the existing Shrewsbury and Birmingham Railway Wolverhampton railway works, between the road and the London Midland and Scottish Railway line to Crewe. Located opposite and accessible from Dunstall Park railway station, the shed backed onto the Stafford Road, with the throat facing Wolverhampton Low Level.[2] As the major depot of the region, it was constructed as a heavy maintenance repair shop but the GWR also needed a shed to replace the former S&B shed, which had easier access to the freight yard which was on the opposite side of the line.[2]
The decision was taken to build a new GWR standard-pattern two-turntable with northernlight roof shed, 0.25 miles (0.40 km) toward Wolverhampton Low Level, which opened on 1 July 1907 under the code OXY. Based on the pattern design set by Old Oak Common, the narrowness of the site meant that the two 65 feet (20 m) turntables were set one behind the other. Provision was however made for two further turntables should the need arise, and so the standard pattern twin-ramp coaling stage was offset to allow for future development. The two lifting shops had 35 tonnes (39 tons) overhead hoists, while ash shelters were provided during World War II.[2][3]
In January 1963, both Stafford Road and Oxley came under the control of London Midland Region, who choose to close the dilapidated Stafford Road with immediate effect. All locomotives and servicing hence moved to Oxley from September 1963, which now gained code 2B.[2]
Closed to steam in March 1967, the shed was rebuilt as a diesel maintenance facility, housing both locomotives and DMUs.
