DREAMS of restoring part of the region's railway heritage by reopening a rural line have moved a step closer to reality thanks to a £1m grant.

Plans to reopen the redundant Weardale railway line, in County Durham, have been backed by the Heritage Lottery Fund with a donation of £990,000 towards the anticipated £5.5m cost of the whole scheme.

The cash will enable Weardale Railways Ltd, the non-profit making company that runs the project, to buy equipment, restore station buildings, build platforms and purchase rolling stock.

The 18.7-mile line, from Eastgate to Bishop Auckland, has been closed to freight since 1993, and a passenger service has not been running for more than 50 years.

It is hoped that a steam-hauled passenger service will be opened between Stanhope and Wolsingham this July, with the whole route fully reinstated and up and running by 2007.

Railway project manager Tony Greenup said: "With all the will in the world the line could not be reopened without financial support.

"It is wonderful to receive such a substantial grant because it means we can move much closer to running a service and Weardale can start to feel the benefits."

The scheme is likely to be hailed as a model of how heritage can be used as a catalyst for regeneration, according to Keith Bartlett of the Heritage Lottery Fund.

Mr Bartlett said: "We are delighted to help this project which is being run very professionally. The dedication and enthusiasm of the people working on the project has reassured us that it will be a great success."

Hilary Armstrong, MP for North West Durham, said: "The re-opening of Weardale Railway is an exciting project and an important part of the plan to regenerate the area. This project offers new opportunities to attract visitors and tourists and generate jobs in the area."