The first section of the Midland Railway, between Midland Junction and Gingin, was opened to traffic in April 1891. It seemed the railway would, despite many setbacks, be completed after all by the Company which had initiated it, and the Acting Chief Justice, Sir Henry Wrenfordsley, described the opening as 'a happy instance of prosperous beginning'. He saw no reason why the Midland Railway should not eventually return a profit to its London subscribers. The entire length of the line between Midland Junction and the Government line at Walkaway was completed by 14th November 1894, when the first train ran the whole distance. The railway was opened for the general public the following year. The opening of the railway made it necessary to provide a new and larger terminal station at Midland Junction. [Þ] This was built in 1895 and remained until its demolition in 1968.

Until this point, the existence of the town of Midland Junction had revolved around its purpose as headquarters for the construction of the Midland railway. When construction was completed, the town's business people began to look about for new ways of ensuring the town's continued existence and growth. In 1892 the Colonial Treasurer had recommended Midland Junction as the site for the central engine depot of the Government railway system. He described the site as ideal because land there was cheap and, being level, was suitable for shunting purposes. A block of 167 acres of land for a Government railway reserve was set aside on the south side of the Government line immediately opposite the Midland Railway Company's headquarters. In 1895 the Government announced its intention of moving its railway workshops from Fremantle to Midland Junction. Having announced its intention to move the workshops, the Government proceeded to hesitate and vacillate, and postponed a definite decision on the subject. This became a sore point with the people of Midland Junction.

A Progress Association was formed to forward the town's interests and to press for the establishment of a municipality. The Progress Association quickly achieved its initial aim, and on 8th December 1895 the Municipality of Helena Vale was proclaimed. The name chosen referred to the town's location near the 'valley' of the Helena River. 'Midland Junction' was considered too prosaic a name for a noble city, which its residents evidently hoped the town would become. Nevertheless, most people continued to refer to the town as 'Midland Junction'. Partly out of habit and partly because the Government never changed the name of the main railway station. For the first six years of the Municipality's existence the town virtually went under two names, until the original name was officially restored in 1901. "Helena Vale' survived as the name of the town's race course and of a local hotel.

Following the necessary election, the first meeting of the Municipality of Helena Vale took place in the goods shed of the Midland Railway Company on the 18th December 1895, pointing out the primitive state of public amenities in the town at the time. A small Government schoolroom had been built in 1893 and a wooden hall for the Anglican Church in the same year, and subsequent meetings of the Council were held in both of these buildings.

Among the first activities of the Council was to have the scrub and tree stumps cleared from the town streets, the boundary lines of which were still marked only by survey pegs. An amount of money was granted by the Government and the Council for works, and in March 1896 tenders were called for clearing several streets, among which were Spring Park Road, [Þ] Byers Road, William Road, Helena Street, Keane Street, The Avenue, The Crescent, Woodbrigde Terrace [Þ] and Boundary Road (the last two are now known as Morrison Road).

All these streets surrounded the central area of the town, Boundary Road apparently being at the outer boundary of settlement, as its name implies. Subsequently the town spread beyond these limits into adjoining estates of 'Woodbridge' and 'Spring Park'.

Within a short time, not only had the roads been cleared, but also three miles had been macadamised and eight miles of footpaths had been constructed. A post office was built on the south corner of the public triangle and behind it, facing Helena Street, was built a wooden building to serve as a public hall. Between 1896 and 1900 there occurred a rapid increase in the number of buildings intended to serve the public. Among them three public houses, (the Freemason's, [Þ] Helena Vale and Midland Junction Hotels) [Þ] and churches [Þ] for the Wesleyan Methodist, Congregational and Anglican denominations.
Many of the early public and private buildings were of corrugated iron or wood, the latter often a fire risk in Western Australia's climate, and liable to attack by white ants. Several business premises were described as shoddily built, and the Municipal Council took steps to invoke the buildings regulations promulgated by the Government. Many of the townspeople were still living in tents and obtained water from shallow wells. There was, of course, no sewerage. These conditions inevitably led to the spread of disease. When the Municipal Council took office in 1895, there were twenty-eight cases of typhoid in the town. The Health Officer appointed by the Council made arrangements to reduce the risk, and in the following twelve months only four new cases of typhoid were reported. A water bore had been sunk on the Government railway reserve in 1894, but this was intended for the use of locomotives, and it was not until 1904 that a town bore was sunk.

The town made rapid progress and by 1897 the population [Þ] had risen to 1,107 (a doubling in size since 1895). In recognition of the increasing size and importance of the town, the chairman of the Municipal Council was given the title of Mayor.