The Central Pacific was incorporated in 1861 and chartered by Congress in 1862 to build a railroad east from Sacramento, completing most of the western part of the first transcontinental railroad. Its financing came from land grants and government bonds.
The company ceased independent operation in 1885 when it was leased to the Southern Pacific, and its assets were formally merged into Southern Pacific in 1959. Its Sacramento maintenance yards were expanded with the Southern Pacific shops, the site now called the Railyards.