When it came time to decide what to do with the old rail line, local citizens knew what an asset the OC&E Woods Line rail corridor would be to the community. The Klamath Rails to Trails Group (KRTG) formed to pursue the development of the OC&E Woods Line as a rails-to-trails. They worked with the US Forest Service, Bureau of Land Management and Oregon State Parks to plan and develop the trail.
As of 2008, the OC&E Woods Line State Trail is paved from the Klamath Falls Trailhead to the community of Olene. This makes a total of 8 miles of paved trail surface where visitors can walk, bike, jog, skate, ski, and ride horseback. Beyond Olene, the trail surface has been graded and compacted, making a good surface for walking and jogging. Additionally, the gentle grade (2%) makes the OC&E trail a destination location for avid bikers.