A feasibility study is currently underway to determine whether the proposed railway museum would be economically viable in the Fountain Gallery.
A meeting was held late last month to discuss the concept of the museum.
An architect will now prepare a design and costing for incorporating a Railway display in Wadlata Outback Centre.
Port Augusta City Council acting director of governance economic and cultural services Lee Heron said that information was currently being gathered to ensure an “appropriate design for this proposal is provided”.
Railway Museum Working Party member Kym Welsby said the Railway museum committee was happy at where the project was progressing.
“At the end of the day, it looks as though the Fountain Gallery is the best way forward, it makes sense,” he said.
Wadlata Outback Centre tourism manager Pauline Hedger said she had seen lots of interest from tourists about the railways.
She said most of the interest had been seen from international tourists but Australians had also been interested.
She said the museum would concentrate on telling the stories of the people who worked on them.
“It really needs to be unique, and this will be a good way for our history to be preserved,” Mrs Hedger said.
Although plans are still in the early stages, she said that if the museum were to be in the centre, it would be interactive to fit in with the rest of the displays.
She hoped the museum would also cover the city’s shipping era.