On 3 May 1879 the railroad came to Nephi, and in 1880 the Sanpete Valley Railroad was built from Wales to Nephi for the purpose of hauling coal from the mines. This helped make Nephi a business center and greatly improved the local economy.

The business district on Main Street grew rapidly, and during the late nineteenth century there were restaurants, mercantile stores, hotels, clothing stores, a tailor, a furniture store, two millinery stores, two barber shops, and several other establishments. At this time, because of the number of businesses, Nephi was frequently referred to as "Little Chicago."