The first light rail tracks have been laid in Franklin as the government remains confident the first stage of the project is on schedule to be operating by late 2018.
Chief Minister Andrew Barr and transport minister Meegan Fitzharris were on-site at Flemington Road where the first tracks were being put in.
Mr Barr said the milestone in the Territory's largest everinfrastructure project was a message to the sceptics who said it would never occur.
"We're keen to demonstrate there is considerable progress being made on the construction side," he said.
"It's not just a transport project for Canberra, it's a city shaping project and you're seeing ... a new city take shape, one that will be more sustainable, one that will meet our ongoing popatultion growth."
"We are the fastest growing state or territory in the nation at the moment.
"So we do need to not only invest in new transport infrastructureto meet that growing population but we also need to align our city's development along those transport corridors."
Ms Fitzharris said the project remained on track and on budget to be running by late 2018.
She said the major milestone in the $939 million project - which will see a light rail line take shape from Gungahlin to the city centre - came a few months before the arrival of the first trams.
While some Mitchell traders have hit out at the light rail project and the lack of consultation, Ms Fitzharris said the project went through the most extensive community consultation process of any infrastructure project in the country.
She said she had been talking with Mitchell businesses about the future potential of a light rail stop in Mitchell
"It would be a priority next stop," Ms Fitzharris said.
The ACT government expects to consider the business case fpr stage two of the project - which would include a line to Woden - in late 2017.