It proposes a fourfold increase in the amount of people living in the city centre, the implementation of a 16-station suburban rail network and five "activity centres" in Bendigo's outer suburbs.

The report, Stage 4 of the Integrated Transport and Land Use Strategy, was conducted by GHD consultants for the City of Greater Bendigo.

Its overall vision is to halt urban sprawl and dramatically increase the amount of people walking, riding and using public transport to travel.

It recommends increasing the number of people living in and around central Bendigo from 700 to 3000 by 2031.

GHD project manager Kevin Begg said Bendigo residents had been vocal in offering their opinions during community consultations.

"There was a lot of interest and passion on this topic," he said.

The report is open for public discussion until December 22.

A THRIVING suburban rail network in Bendigo is "critical to the sustainable growth of the city", a new report has found.

The report was released on Friday and is open for community consultation.

It was commissioned by the City of Greater Bendigo to plan for projected population growth in the future - namely, the city's aspirational target of 200,000 residents by 2041.

The report states "one of the key challenges facing Bendigo is to avoid the need to build its way out of current and future congestion".

It suggests developing a 16-station train network, with stations as far as Huntly, Marong and Kangaroo Flat South.

But GHD project manager Kevin Begg cautioned that a rail network would cost a lot of money and would require further feasibility studies.

He said the possibility had to be researched further.

"These are projects that need a long period of time," he said.

"But in Bendigo's favour, you have a rich tradition of rail."

City of Greater Bendigo Planning and Development director Prue Mansfield said Bendigo residents wanted a suburban rail network.

"I"m absolutely confident the community does (want a rail network), but the state government are the ones that would have to make the investment; that need the most persuading," she said.

She said the council would be "working closely with (the government) to persuade them" (to invest in a Bendigo train network).

Mr Begg said while a train network was a medium or long-term goal, in the meantime the council should aim to improve the city's bus network.

"A good, direct, regular bus network is a good first step," he said.

Indeed, the report states a high quality bus network should form the "backbone" of Bendigo's public transport system.

It notes the current bus system leaves much to be desired; with the majority of buses having "meandering" routes, not running frequently enough and only operating from 7am - 7pm.

"Bendigo's bus service currently provides a social service, catering to those who have no other or limited transport choices," the report states.

"It is not designed to service commuters, who require direct and high level of service."

The report states one of the council's main aims is to increase the amount of people in greater Bendigo who catch public transport to work from 1.5 per cent to 10 per cent.

FIVE of Bendigo's outer suburbs will be transformed into bustling "activity centres" if recommendations in a new report are implemented.

Huntly, Strathfieldsaye, Maiden Gully, Marong and Kangaroo Flat South have been identified as emerging hubs of development in the Stage 4 Integrated Transport and Land Use Strategy.

The report recommends developing these areas to "provide access to a wide range of goods and services, employment opportunities and a vibrant local economy".

It suggests improving public transport in these areas and providing cultural and sporting facilities.

The report strongly emphasises planning for all residents in greater Bendigo to have close access to vital services, to minimise reliance on cars.

It wants to "progressively increase the percentage of residents living within 400 metres of an activity centre or neighbourhood activity centre".

It says "preventing urban sprawl" should be one of Bendigo's main aims going into the future.

City of Greater Bendigo Planning and Development director Prue Mansfield said Bendigo didn't want to mimic Melbourne's urban sprawl.

She said while houses were often cheaper in outer suburbs, often the savings in house prices were offset over time by money spent on travel costs, including petrol.

City of Greater Bendigo Integrated Transport senior planner Katherine Wrzesinski said further urban expansion would damage Bendigo's reputation as a "city in the forest".

"If we continue spreading out and cutting into native forests that character will be threatened," she said.

As well as developing the outer suburbs and halting the urban growth boundary, the plan suggests developing buildings - both residential and commercial - in the city centre, to attract more residents to the area.

It suggests developing more units in Bendigo to cater to Bendigo's ageing population and smaller households.

To view a copy of the report, visit www.bendig.vic.gov.au/transportplanning