The E-class 0-6-2T locomotives were derived from the earlier E-class 2-4-2T version for suburban passenger work, as represented by preserved locomotive E 236.  The 0-6-2T version were designed for shunting duties; converting the leading axle of the 2-4-2T to driving wheels increased adhesion and hence tractive effort.  The first five E-class 0-6-2T locomotives were built by Phoenix Foundry, Ballarat in 1893.  Two 2-4-2T’s (including preserved loco E 371 which had originally been No.494) where converted to 0-6-2T configuration in 1898, plus a further two in 1906/7.

The majority of the E-class 2-4-2T locomotives were rendered surplus following electrification of the Melbourne suburban railways and hence a further 20 were converted to 0-6-2T configuration between 1919 and 1923, making a total of 29 0-6-2T locomotives.  A further 20 surplus E-class 2-4-2T’s were sold to the South Australian Railways for suburban duties around Adelaide.

E 371 was already last of its type in service when officially taken off the register in 1966 but it apparently continued to find use into the early 1970’s as a shunter at Newport Workshops.   Fortunately it survived long enough at Newport Workshops to be allocated to the Victorian Goldfields Railway at Maldon for preservation.

At Maldon, E 371 was dismantled for assessment in 1992 but I understand that it received an unfavourable mechanical and boiler report.  Accordingly it was reassembled (sans boiler cladding, most fittings and numberplates) and placed on static display at Maldon station.

Wikipedia provides some additional information about the Victorian Railways E-class steam locomotives.