Planning and design work for new train stations at Goornong, Raywood and Huntly has started.
First announced in 2018, Rail Projects Victoria and the Department of Transport has started the work as well as environmental investigations for the three stations.
The construction of the stations will be the third stage of the state government's Bendigo and Echuca Line Upgrade. Stage three is valued at $49.6 million.
Minister for Transport Infrastructure Jacinta Allan said the addition of stations in the three towns north of Bendigo would benefit the communities living there.
"Planning work has begun on the new stations at Goornong, Raywood and Huntly, which will provide these growing communities with access to public transport close to where they live," she said.
"The Bendigo and Echuca Line Upgrade is underway to enable more frequent and reliable services for passengers on the Bendigo and Echuca lines.
"Rail Projects Victoria is in the process of procuring a contractor to deliver part of the work."
A timeline on when construction may begin and how long it could take is expected to be confirmed in the coming months.
The Bendigo and Echuca Line Upgrade is curently in stage two, which provides signal upgrades and more frequent services between Bendigo, Epsom and Eaglehawk.
Stage three of the project also includes a planning study focusing on what is needed to provide trains every 40 minutes between Bendigo and Kyneton and for the reopening of Harcourt's train station.
Discussions between Rail Projects Victoria, the Department of Transport and the City of Greater Bendigo have also taken place to help deliver the best outcomes for people who will use the new stations and where the new stations will be located.
The outcomes of site investigations and environmental studies during January will help deliver design work and construction time-frames.
The Bendigo and Echuca Line Upgrade is being delivered as part of the $1.75 billion Regional Rail Revival, which is upgrading every passenger line in Victoria.