Although it's a pretty well-known song, it seems a bit of a mystery as to where it came from.
The BBC recorded it twice in the early 1950s - this is the note in their catalogue.

ROAD TO KILALOE
Singer: Seamus Ennis                                                                        3.44   16335
Recorded London.
21.11.50        
'It was at the Limerick station/l met an old relation/Of no fixed occupation/And he lived the de'il knows where...'
(Learnt while in Kilaloe in 1948, from a man called Ryan).

1   Singer: 'Lal' Smith                                                                        1.35    18582
Belfast.   
1.8.52 (P.K - S.O'B.)
'Oh, it been at the Limerick station ,
This song is of recent origin: a man meets a relation at Limerick station and they go off on a spree. The man then meets a girl wearing white and blue and they miss the last train from Limerick and have to walk to Kilaloe (about 12 miles north - east of Limerick), where the man receives a hiding from the girl's father. Ends with warning to others to be wary of girls wearing white and blue.        

Lal Smith was originally from Caherciveen, in Kerry; her family name was Purcell - her father, Christie was also recorded around the same time.
The family were show-people around rural Kerry, among other occupations, they ran a travelling theatre ('fit-up') and cinema.
Jim Carroll