Looking at the issue of returning trams to Bendigo as a public service, I see two main issues – funding and support.
If the state or federal government is involved in funding then expensive studies and delay will be involved.
Start on a more grassroots level and seek private support on say the railway station to QEO section first.
Show that it has been a positive benefit to relieve some CBD congestion, then approach the governments for funding to extend say back to Quarry Hill and Golden Square.
If that fares well, extend to other areas like Eaglehawk and Kangaroo Flat or White Hills (crossing the railway being a big hurdle).
If the mayor and council give support behind the first stage then the planning and operations can be expedited somewhat (before involving the federal and state bureaucrats in the process).
Start small and increase as time goes by... you have some of the infrastructure and some vehicles on hand to begin service before asking others to fund new ones.
Queensbury, New York, USA