After being held near the Bathurst Visitors Information Centre for almost three years, the historic CBA 547 train carriage was moved on Wednesday to its new home near the under-construction Bathurst Rail Museum.
The carriage was lifted onto a truck, before being transported to the museum's work site on the corner at Havannah and Lord Streets.
Bathurst deputy mayor Bobby Burke said the carriage has come to a "good home".
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"The carriage has come up here to join the museum, which will be ready to open in February," he said.
"It's got a bit of history behind it and it's coming to a good home.
"Council has put a lot of work into this new museum. We have a lot of museums in town and they're all not too far from the CBD."
Ben O'Regan, who is the project coordinator for the new rail museum, said the carriage will be a key element of the museum.
"People will be able to go on it and have a look," he said.
"There's only about 40 timber carriages like this one left in NSW, so it's a rare item."
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Plans for the Bathurst Rail Museum was approved in March, 2018, costing $2.5 million.
The museum has long been planned by council and it will include a mix of permanent and temporary exhibitions that tell the story of the rail industry in Bathurst.