Since 2004 the line has been operated by Ealing Community Transport, a not-for-profit company which is involved in a range of transport initiatives across the country, and which has built up the Dartmoor and Weardale Railway services with support from local communities and councils. However, the organisation has now withdrawn its support for what was Britain's first independent community railway.

In a statement ECT said: "We believe that the government's community rail strategy will provide increased opportunities for small scale community focused rail operations. However, it has proved increasingly difficult for ECT to provide the necessary management focus and investment. Accordingly, following a thorough review of our rail business, ECT has decided to focus on its core activities of providing high quality, environmental and community transport services. ECT is therefore seeking new ownership and investment for its rail business. We believe that they have a great future and we already have a number of parties interested in taking on the challenge and opportunity."

Although the Dartmoor Railway is not part of the National Rail network and provides a heritage service to its three stations, it has provided an insight into alternative funding and operational approaches to running lines serving local communities. The Dartmoor line has its own team of engineers and proposals to restore through services to Plymouth via Tavistock have suggested that the Dartmoor Railway, rather than Network Rail, should be responsible for infrastructure north of St Budeaux in order to keep costs down. Transport Scotland is reportedly considering a similar arrangement to minimise costs for the Waverley line reopening project in the Scottish Borders.

As a result of the decision by ECT to cease operations, the buffets at Meldon and Okehampton together with the shop at Okehampton are now closed and staff have been made redundant. According to the Friends of Dartmoor Railway two prospective purchasers have been going through a due diligence process. Train services on the Weardale Railway, which is part owned by a trust and local authorities as well as ECT, are continuing.

Earlier this month E&HCT- a joint venture between ECT and another social enterprise, HCT - won a four-year contract from the Olympic Delivery Authority to provide drivers, buses, vehicle maintenance, route planning and timetabling to support the increasing number of workers employed on the 2012 Games sites in east London.