Lodestone is a small boom town created by the 49er gold rush (1949), and is the site of the Kay Smith Mining Supply Co. which services the many new gold mines owned by LS&I owner Dr. Arthur Smith. Mrs. Smith is quite adamant that setouts be precisely aligned with the proper doors (7 total spots).  There are 8 additional small industries to switch, with a total of 18 spots (25 total for Lodestone).  Occasionally serviced by LS&I steam, the daily runs from and to Blackwater Junction are now usually performed by LS&I employees using leased SP power.  

During 4 interchange operation, this area is the responsibility of the Lodestone, Sierra, and Incline Village Railroad (LS&I).  Employees of the non-union LS&I are the best of the best in efficiency and diligence, consistently perform with a near zero defect rate, and consequently enjoy the highest pay in the industry.