£5.5 million is going to be spent on revitalising the South Tynedale Railway in Alston.
The three year project includes extending the line to the village of Slaggyford and improving the platform at Alston for visitors.
The line was re-opened by train enthusiasts in the 1980s after it had been closed in the 70s.
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The historic event always takes place on the last Friday in July.