Derails are to be found where a siding connects to the main line. Specific station layout locations can be found on Track and Signal Diagrams of the NSWGR such as those available from the Australian Railway Historical Society (ARHS). The derail is located just short of the connection to the main line and is connected to the point such that when the point if to the main the derail will put a runaway wagon into the dirt, hopefully not then fouling the main.
The derail has no blade like the catch point but has a steel casting that can be flipped over onto the left running rail (facing the main line) which will cause the wheel of a wagon to ride up and over the rail. The model version does not flip over.