Work has begun replacing some of the ageing tram tracks around Lake Wendouree.
The works were made possible after volunteers at the museum successfully raised $200,000 through the state government's Pick My Project last year.
The remaining cost of the contract was covered by the City of Ballarat.
It will cover the replacement of 300m of track from the depot end to Carlton Street. It is hoped the works will make for a smoother ride for the historic trams that run along the route. Trams will still be running during the works, which are expected to last until mid-way through next month.
Trams have been a regular feature around Lake Wendouree since tracks were first installed in the late 19th century.
Most of Ballarat's tram network was closed in the 1971 but the single electrified track at the eastern end of Lake Wendouree was maintained by enthusiasts from the Ballarat Tramway Museum. The trams remain a popular Ballarat attraction, taking tens of thousands of passengers every year.
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