Blue Mountains City Council and the state government have a reached a breakthrough in plans to reopen Lapstone tunnel for community use.
Blue Mountains mayor Mark Greenhill welcomed the development in long-running talks between the two bodies, with the state government committing $1.5 million to the tunnel's restoration.
"I am informed by our staff that council is currently negotiating a deed of agreement with the state government that will see funding given to BMCC so that preparatory work can begin on-site," said the mayor.
"The intention is to investigate opening the tunnel for cycling and hiking, connecting to trails that will open in the Lower Mountains.
"This wonderful piece of Australia's history could end up with a new lease of life instead of being locked away, as it has been for years.
"Our vision will only be achieved with the support of the community and I will ask staff to brief my mayoral reference group on cycling as soon as possible."
He said there would be "a real economic benefit to our city from cycling experiences and this is the beginning of a real journey to that outcome".
Ward 4 Councillor Brendan Christie also welcomed the breakthrough on the tunnel, (which is also known as Glenbrook tunnel).
"I have been passionate about this project for many years and I am thrilled at this outcome," he said.
"This is a great start to what I know will be a fantastic community asset that will enhance the values our community holds dear around preserving history and supporting active lifestyles, while bring business to our local community."
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Penrith MP Stuart Ayres said the $1.5 million funding would pave the way for reactivating the tunnel as a recreational trail.
"This funding will help progress the adaptive reuse of the tunnel as a walking trail and tourist attraction for locals and visitors alike to enjoy," said the Liberal MP.
"Opening the tunnel would provide a missing link connecting Glenbrook and Lapstone villages with Leonay and Emu Plains and Penrith's Great River Walk, and contribute to an extensive network of tracks and trails in the area that will add to the region's tourism appeal."
The $1.5 million stimulus funding follows $600,000 previously invested by the state government to clean-up part of the tunnel, and to install a stainless steel gate at the western end in 2019.
The 660-metre long brick railway tunnel, which was originally constructed in 1891 and then shut in 1913, was used for mustard gas storage in World War II amid fears of a foreign invasion.
NSW planning and public spaces minister Rob Stokes said the new $16.5 million Greater Sydney Crown Land Open Space Activation Program would fund upgrades to Crown land and community facilities.
"The last 12 months has taught us the importance of green open space and creating public places where people can safely meet, congregate and relax," said Mr Stokes.
"It makes good sense that by improving Crown land and public infrastructure we can make better use of the assets we already have to create more open space for the community to enjoy."
