The S&W and SBR become the joint property of the Midland Railway and the Great Western Railway with a Joint Committee of three directors from each company being formed.
A condition of the sale of the S&W is that the main line is extended into Cinderford town. It is agreed that the town's recreation ground will become the new terminus.
With the original S&W locomotives in such a bad state, the joint committee agrees mileage hire rates for GWR and MR locomotives.
The doubling of the line between Tufts Junction and Parkend is re-commenced, having been halted in 1893.
Work commences on the Cinderford extension.
The doubling is submitted for inspection by the Board of Trade, which recommends improvements.
The doubling finally gets approval.
The Cinderford Extension opens.
Lower Lydbrook station is closed, the first major casuality of the S&W. At this point the station was a unmanned request stop which is somewhat inaccessable.
The Dean Forest Mines act is passed results in increased coal traffic over the S&W, with improvements at Speech House Road and Serridge Junction being made.
The hire rates agreement of 1895 expires and the system switches to a time-based rate.
The maintenance of the permanent way is split, with the GWR taking responsibility for the line from Coleford Junction northwards and the Mineral Loop, and the MR having the rest of the line to maintain.
The GWR decides to introduce passenger services over its own Forest of Dean branch and a connection is built from that line to the S&W line into Cinderford. With the new route being shorter to Gloucester, this has a marked effect on S&W passenger services from Cinderford. The connection opens in April 1908.
The GWR line to Coleford is closed, apart from the section from Coleford to Whitecliff Quarry which the S&W takes over the
Coleford S&W Station building is destroyed by fire. However, it would be six years before new permanent facilities are provided.
The S&W runs at a loss, and expenditure is reduced over the next few years.