The Australian State of Queensland, the federal government and the Gold Coast City Council have jointly signed an agreement to fund the construction of Queensland's first light rail system.
The $949m Gold Coast Rapid Transit project involves building a 13km line linking Griffith University at Broadbeach to Surfers Paradise.
The federal government will contribute $365m for the project in addition to $120m from the Gold Coast City Council.
Work is expected to begin shortly and be completed by January 2014.
The project, once complete, will reduce congestion on roads and benefit 20% of the Gold Coast's population.