Victrack says the abandoned station buildings and surrounds could be handed back to the community to develop as a education, arts and cultural space.

At last week's ordinary meeting, council voted to provide in-principle support for the proposal.

Creswick Ward councillor Don Henderson said revitalisation of the station would provide a venue for a diverse range of individuals and groups with the potential to attract visitors to the area as well.

A small focus group formed following a community meeting last year and has been working on the project.

The group now seeks to involve the wider Creswick community and to establish the Friends of the Creswick Railway Workshops.

A public meeting is to be called in the near future in order to involve all interested parties.

Focus group member Earl Ingleby said proposed uses included a trade school, an arts studio including a kiln for ceramics and a gold information and tourism space.

"It's what the community wants and it will help bring more people to the town," he said.

"We want the facilities. We don't believe the building should sit there abandoned, asking to be vandalised."

During last week's ordinary meeting, Holcombe Ward councillor Bill McClenaghan said more than 25 years ago, when the railway closed in Daylesford, it was handed back to the community.

He said the tourist railway had since become an important attraction for the town.

"I think it's a fantastic idea. I think it's going to grow Creswick's product," he said.