Bluebell Valley is a valley and village located on Stepney's Branch Line north-west of Crovan's Gate, that connects with the Skarloey Railway. It is named for the large number of bluebells which grow here during the spring.
Since being saved from scrap, Stepney has worked the line through Bluebell Valley and brings passengers here. The valley is popular with tourists during spring, when the bluebells grow.
The station has two platforms: one for the standard gauge Bluebell Railway and one for the narrow gauge Skarloey Railway. A diesel refuelling tank for Rusty and a water tower for Stepney are located at the station. A small shed for Stepney is also located near the station.
Despite being stated to be "a far away place" from the Skarloey Railway in Rusty to the Rescue, Bluebell Valley is actually quite close to the railway.