The Goulburn to Crookwell rail trail project has received the support from the city's Chamber of Commerce.
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A letter written by the chamber to the Goulburn Crookwell Rail Trail Inc. earlier this month states that they have been supportive of the proposal since 2014.
It further states that the project has the "potential to contribute to the region, in particular the significant tourism, economic, social and health benefits associated with this proposal".
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Local businesses, specially the hospitality industry, have been affected due to drought, bushfires and COVID-19.
"...The positive impact of the Rail Trail, were it to become a reality, on both local industry across a number of sectors in and the social fabric of the LGA, cannot be over-estimated," it further states.
"This would be the case were the project to go ahead in its current "long form" or in the first of a staged approach. The Chamber is aware that Goulburn to Woodhouselee is seen as a possible first stage."
The letter of support comes after Goulburn Crookwell Rail Trail Inc. gave a presentation before the chamber in July.
Meanwhile, a fresh review of the Goulburn to Crookwell rail trail proposal was undertaken in June by a Wollongong based company.
The experience of the company as a consultant for the 21km Rosewood to Tumbarumba rail trail pilot project was drawn for the Goulburn proposal.
The latest review by the company has estimated the total cost of the project to be $14.16m.
The 56km Goulburn to Crookwell rail trail proposal would see the former railway line converted into a rail trail for cyclists and walkers.
The project has been under consideration since 2015.
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