Rail Trails for NSW chairman John Moore said the trail for cyclists, horse riders and walkers could bring new life to whistle-stop villages like Michelago, Bredbo, Nimmitabel and Bombala.

Communities and shire councillors are pushing for more trails, and say fears of them bringing diseases and vandalism to properties are unfounded, because rural roads have long carried the same risks.

Mr Moore will caution friends of the growing rail trail movement on Saturday, funding is already exhausted, and future projects will depend on the outcome of the NSW Government's partial leasing of its electricity [poles and wires] network.

Mr Moore visited Michelago railway station and president of the village's community association Cate Spencer on Friday. The station is maintained as a meeting place for the community and has a photographic display in the waiting room, including a train at night with all its lights ablaze.

Covering more than 212 kilometres, the railway line from Canberra would cost about $42 million to re-open as a rail trail. Two early stages could be Michelago to Cooma, and Cooma to Nimmitabel. The Canberra to Bombala line opened in 1889 and services to Cooma finished in 1988.

The line includes the Colinton Tunnel at Australian Bush Heritage's Scottsdale Reserve south of Michelago, and an ironbark viaduct at Bredbo.

Rail trails cut through hills, over embankments and across gullies and creeks with gentle slopes designed for steam trains, make them popular for cycling and walking.

Mr Moore says when the idea was put forward to use disused railway lines in NSW, $110 million was put forward for infrastructure projects, which was revised to $50 million for specific rail trails, before $40 million was allocated to a Northern Rivers trail and $5 million for the Tumbarumba to Rosewood trail.

This left only $5 millon in the 2105/16 financial year for future trails.

"We are hoping when the poles and wires sales goes through more money will be allocated for rail trails," Mr Moore said. If the NSW Government did not move on this it would be left behind, compared to what had been achieved in Victoria.

"There are three trails, or new sections, opening every year in Victoria," Mr Moore said. "We are 21 years behind."

Some farmers object to the trails. One of their concerns is disrupting the movement of their livestock when rail easements are fenced. Mr Moore said this could easily be overcome with gates, which could close to riders to enable stock to cross, and re-open, or pre-cast concrete bridges under the rail easement.

Trails in Victoria and overseas have boosted tourism and have other benefits, according to Mr Moore. "The money rail trails, which are maintained by volunteers, will save the government in maintaining those easements will amount to a small fortune," he said.