Tumbarumba Shire Council and Rail Trails For NSW lodged an application to develop a 22.5km track on August 19 to the state government, via state member for Albury Greg Aplin.

The NSW goverment allocated money for rail trails for the first time, some 20 years behind other states.

Rail Trails For NSW hosted a workshop in Sydney yesterday, sponsored by Destination NSW, to assist potential rail trail teams in making an application to the state government for approval.

Tumbarumba mayor Ian Chaffey attended the session but confirmed no further developments in the application process.

"I don't think there was anything said that we haven't heard before," he said.

"I can understand why they don't want to sell the rail corridor.

"However, the Tumbarumba to Wagga line hasn't been used since 1974."

Councillor Chaffey, while acknowledging landholder's opposition to the development, said his initial ambivalence on the issue was overshadowed by tourism that kept small towns afloat.

"If you want to put icing on the cake, we need money from outside the community," he said.

"It's got huge potential.

"I'd love to see it.

"(But) Some property owners have legitimate concerns."

A feasability study was first undertaken in 2006 with Rail Trail Tumba to Rosewood Line Group, and two months ago they produced a development plan.

"We've endorsed this on behalf of Tumba Rail Trail committee," Mr Chaffey said, outlining six councillors supported and two opposed the development.

"It's a democratic process and the general consensus is we see this as an opportunity to grow."

There are currently several rail trails operating in NSW on privately owned tracks, but nothing on state government track - as yet.

"I think it's been on the agenda for years," he said.

"There's a long way to go in the process."

Mr Chaffey believed the timing of submitting the proposal was a strategic move, given the state election in March.

"There's still a long way, there's still a lot of water to go under the bridge," he concluded.