In 1878, the New Zealand Railways opened the Rimutaka Incline over the mountains of the same name in the Wairarapa region of the North Island. To overcome the inline of 1 to 15 or 6.67 percent, they chose the Fell system. This included a horizontally mounted central rail and horizontally mounted wheels which gripped both sides of that rail. Additionally, there were brake shoes that worked on that rail.

In 1875, Avonside delivered four 0-4-2T locomotives of this type which were later designated class H. In 1886, Neilson delivered two more. While other Fell locomotives used one pair of cylinders for both horizontal and vertical wheels, these locomotives had one pair of cylinders each. This allowed to use only the adhesion wheels on sections where no central rail was available.

They usually travelled at 4 to 6 mph when travelling upwards and 10 mph when travelling downwards. From 1906 they were supported by the heavy E 66 Mallet, but this left the Rimutaka Incline a short time later then the NZR bought the flatter Wellington and Manawatu Railway. Traffic on the Rimutaka Incline now decreased so that the six class H locomotives could handle it alone.

After construction of the Rimutaka Tunnel, the class H locomotives made their last commercial run in 1955 and were then used to dismantle the line. The only one that was preserved is H 199. It was restored in the eighties and is now on display in the Fell Engine Museum. The Rimutaka Incline Railway Heritage Trust is planning to build a new line in the original location. They are also planning to build to new class H locomotives.