The decision of the State Government in 1906 to extend the railway line from Mudgee to Dunedoo formerly called "Redbank", initiated the necessity for a complete redesign of the village.
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Otherwise it meant that the line would have been constructed right through the northern part of the settlement over private properties. The first survey of the settlement was carried out by Surveyor William Conder in 1868. Conder's plan provided for the settlement to be closer to the Talbragar River and that the streets would have girl and boy names. Details of the amended survey appeared in the Government Gazette of December 17, 1906.
The proposed railway line on the amended survey still passed over four one quarter acre blocks. Three were acquired by the Department of Railways. The fourth was under crown lease to Mrs Mary Ann Johnstone. Her son Frank looked after a small flock of sheep, she conducted a limited mixed business at the side of then of Cobbora-Leadville road which passed through Dunedoo.
The surveyed railway line ran right along the front of the veranda of her residence and shop. Mrs Johnstone was served with notice that the Railway Department proposed to acquire her land. Despite the fact her customers were not numerous, Mrs Johnsone now 76 years of age, refused to move despite the threat of legal proceedings. Her steadfast stand was supported by the public who bestowed upon her the name of Granny " Stayput" Johnstone. Few histories of Dunedoo are written unless Granny gets a mention. She is regarded a heroine of the past - one who was prepared to stand up to authority.
However, the Railways had the final say and she was moved bag and baggage from the site. Her son, Francis (Junior) purchased a block of land, in Bolaro Street, and Mrs Johnstone continued to operate her shop and post office in the new location. Regrettable it was only for a short period. The forceful removal effected her health and she went to live with her daughter for the last four years of her life. Granny "Stayput" Johnstone passed away on January 16, 1914, age 82 years. She was buried in the Roman Catholic Cemetery, where her husband was interred in 1889.
Mary Anne Johnstone was born in 1832 at Fermanagh, Ireland, daughter of Hugh McLaughlin, a blacksmith and Nancy Mcalla. She married Francis Johnstone in 1852 age 20 years. Francis and Mary arrived in the colony in 1856 aboard the Ben Nevis. Mary Johstone's husband, Francis, Senior, was born in Cash, Ireland, in 1826, the son of Alexander Johnstone, boot maker and Mary Shenan. Francis, a hawker, died on June 27, 1889, 63 years of age, at Bolaro, near Cobbora. The first passenger train from Mudgee reached Dunedoo on November 26, 1910. The service ceased September 12, 1965.