Hundreds took the journey on the 100-year-old line to say goodbye.

"It was a very popular service and locals objected to the closure, so a lot of people had travelled back and forwards free of charge on the final day, and they stayed right to the end to make the final trip," Lake Macquarie and District Historical Society secretary Max Pengilley said.

On March 10, 1990 it was the end of an era when the train pulled into Fassifern for the final time.

The Excelsior Company ran the first tram on the 4.4 kilometre route on March 7, 1891.

At one time a draft horse was used to pull a 14-passenger trolley on the weekday service, but the combination didn't last very long after male passengers were occasionally asked to get out and help the horse cope with the steeper grades.

The NSW Government took over the line in 1910 and the regular Newcastle to Toronto rail service was launched on May 28, 1911.

Lake Macquarie MP Greg Piper said he was pleased that the line was retained in public ownership.

"While a regular service is certainly not in the foreseeable future, we're denying future generations the opportunity of a rail option if we don't retain these corridors in public ownership," Cr Piper said.