Until the early 1960s, government regulations protected railway freight services. It was illegal for trucks to transport goods greater than 48km. Gradual relaxation of these regulations, and their eventual removal in 1983, sounded the death knell for rural lines like the Otago Central Railway. Road transport was claimed to be the way of the future; a sentiment now regretted in many quarters..

The section of line between Clyde and Cromwell was the first to go. This closed in 1980 and is now deep under Lake Dunstan formed by the damming of the Clutha (Mata – Au) by the Clyde hydroelectric dam. The rest of the line remained opened purely to transport material for the construction of the Clyde Dam. The commissioning of the dam in 1990 brought about the line’s closure between Clyde and Middlemarch.

A trust set up in Dunedin worked with the City Council to secure the section of line from Middlemarch to Wingatui, where construction of the Otago Central Railway began on June 7, 1879. From fairly inauspicious beginnings in 1978 as an occasional excursion train from Dunedin to Middlemarch, the Taieri Gorge Railway, together with the Rail Trail, is now a major tourist attraction and contributor to the local economy. A nationwide internet-based public survey by AA Travel rated the Taieri Gorge Railway/Otago Central Rail Trail 16 of 101 Must- Do’s in New Zealand. (http://www.aatravel.co.nz/101-must-dos-for-kiwis/)

Rather than seeing the remaining railway corridor from Middlemarch to Clyde become incorporated into farms, the Department of Conservation in Otago, with the backing of business and community figures who formed the Otago Central Railway Trust, proposed it become a cycling and walking trail. Supported by the success of Rail Trails overseas, and despite some negative comment from locals, the concept met with central government approval.

In 1993 the rail corridor was purchased as recreational reserve by the Department of Conservation. This was done on the condition it did not divert funds from other priority conservation work. It fell on the Otago Central Rail Trail Charitable Trust to seek funding support. Between 1994 and 2000 the Otago Central Railway was transformed into the Otago Central Rail Trail. All 68 bridges were re-decked and equipped with handrails and the surface made more suitable for cyclists and walkers.

Although the trail officially opened in February 2000, development and enhancement of the experience has not stopped. In 2006 the Trust secured significant funding for major re-surfacing of large sections of the trail. In the same year the Trust launched the Otago Central Rail Trail Passport as a self-stamping souvenir of achievement. A total of 10 new gangers’ sheds to provide shelter from the elements were constructed and positioned along the trail early in 2007. In the new sheds, and two of the originals, are colourful information panels describing what can be seen from each shed, what to expect to see up and down the line, how far to destinations and photos and information about such off-trail attractions as Macraes Flat, Patearoa, Naseby, St Bathans, Ophir and more. The impact of the Otago Central Rail Trail on the economy of the region has been enormous. Townships once dying are alive with vitality.
		In 12 gangers' sheds along the Rail Trail you'll find these colourful and informative Interpretation panels developed, written and produced by the Otago Central Rail Trail Trust. Photo: Dave Murphy

Tired and run down hotels now offer refurbished respite for trail users. Southern hospitality of course abounds.

The Otago Central Rail Trail Trust carried out an economic impact survey in 2005 and followed up with another in 2008. Click  2005. Results or 2008 Results for PDF downloads.