A new station was opened at Welshpool on 18 May 1992. The former Cambrian Railway was moved eastwards so that a by-pass road could be built along the original course of the line. Moving the line meant that the original station had to close and that was why the new station was built.

The 1992 station was fairly typical of what was being provided in that era when it was still considered that railways would continue to decline. The station consisted of a single island platform with bus stop tyle waiting shelters. Access to the station was via a footbridge that linked the platform to the concourse area of the original station.