Friends of Canadian Corridor members are creating the Bunny Rail Trail connecting the Mount Clear township to Woowookarung Regional Park through a beautiful stretch of bushland.

Committee member Tarn Kruger said the project was a great example of stakeholder collaboration and how community members could see big visions come to life.

"It is very exciting. It is a great local community win," she said.

Friends of Canadian Corridor members initially noticed the land at 55 Recreation Road up for sale in 2019 and developed a proposal to build a new rail trail along the old rail embankment on the property.

Buninyong MP Michaela Settle convinced the Victorian Education Building Authority to pause the auction of the land following a request from the community group.

City of Ballarat purchased the land in November 2021 and Community Bank Buninyong provided $33,000 funding for the completion of the trail.

"It is joining up the jigsaw," Ms Kruger said.

"It will be fantastic access for the high school, the scouts will be excited and it will open up the park (Woowookarung Regional Park) more, letting people know what great treasures we have here in our backyard."

"It will complement the new tracks in the park and ultimately the forest river loop from Ballarat station through the park to Buninyong and back along the Yarrowee River trail. This is one of the key pieces."

The new roughly 400 metre trail will also connect through Woowookarung to the Eureka Centre and the existing 'Bunny Trail' connection to central Ballarat.

Community members and stakeholders attended a celebration at the bushland reserve on Thursday.

Friends of Canadian Corridor committee member Joel Ellis said it was exciting to see the interest the project had generated in the community.

"It is a good initiative to connect people to the local environment and to the heritage of Ballarat's roots," he said.

Community Bank Buninyong director Andrew Mason said the bank's purpose was building community and values were connect, facilitate and leverage.

"The funding we have put in has leveraged other funding, enabled conversations between agencies to create the project, but the big thing was about connections," she said.

City of Ballarat Councillor Ben Taylor said stakeholders came together to deliver a fantastic project.

"It is an amazing bit of land that should be for the people to utilise," he said.

"The power of the people in this one in coming out, climbing the fence, having a look at what is possible, the vision was there by the community and now it has become a reality with the community bank and council."

Trail construction works are expected to begin in July.

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