That locomotive is from E. L. Moore's Rowland Emett tribute diorama and was found parked on a siding of the Elizabeth Valley RR....
Looks like someone is pouring something into the machine. That's the Elizabethton Depot over on the right.
That's a snippet from a larger scene on the Emett diorama. Same loco, different station: Twittering Halt.
In the mountains surrounding the Elizabeth Valley, Mr. Moore hid away the wandering house that appeared in both the Emett diorama and the Water Wheel Mill scene. Wherever it goes, it aways seems to be To Let :-)