Cootamundra MP Steph Cooke met with committee members from Young's Railway Interest Group on Thursday to hand over a cool $17,500.
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The group secured the state government funding through the 2019 community building partnership program to refurbish a railway carriage.
Tom Douch, Leo Schalk and Graeme Holmes gladly accepted the cheque.
"The carriage could do with plenty of tender love and care and this funding should help the group on their way so that we - the community - and visitors can enjoy using the carriage," Ms Cooke said.
"When this carriage is refurbished it will house a working diorama of Young Railway Station in 1960 when the railways were at their height. It will be a community event focal point, linking to our local history."
The old carriage rests next to the Young Railway Station.
The Railway Interest Group hopes to secure more funding to go towards building a shelter and replacing the weather damaged roof of the carriage.
"We are grateful for the funding that will enable us to get this refurbishment project underway. At the moment the carriage is not currently used due to its poor state," Mr Douch said.
Applications for the 2020 community building partnership program opened in May.
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