Passenger trains should be stopping at Bedale in North Yorkshire this spring for the first time in 50 years.
Vintage diesel trains run on the Wensleydale line
Around £1m is being spent to bring the station back to life, linking into the Leyburn to Leeming Bar service run by the Wensleydale Railway.
As well as reopening the station buildings, plans to create an exhibition area and a series of craft workshops have been drawn up.
Half of the money is coming from Yorkshire Forward.
Hambleton District Council and North Yorkshire County Council are contributing the rest.
Part of the Bedale station is currently occupied by the Kerfoot Group, which manufactures vegetable oils.
Managing director David Kerfoot said: "This scheme will be one of the best things to happen to Bedale in the last 20 years," he said.
"It will open up the town for new business and bring in many tourists."