Entering service with the LB&SCR as No. 68 Clapham, the locomotive was sold to LSWR in March 1903 for use on the new Lyme Regis branch, receiving the number 735. Unfortunately, the Terrier was not suited to the sharply curved and steeply graded line and 735 was moved to light shunting and other branch line duties until late 1911, when the locomotive was reboilered.
Re-entering traffic the following summer, minus condensing gear and exhaust steam pipes, 735 was engaged on the Chard branch until it was fitted with motor-train gear for use on the Lee-on-Solent Light Railway.
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