Council project manager Philip Royle said people would be able to hop aboard weekend, for free rides on Sunday and Monday to celebrate its reopening.
"This is a fantastic attraction for children and their families, so we're really pleased we've been able to help get the service back on track," he said.
The train has been running since 1979, and engine driver and Lions club member Kevin Wright is thrilled see its return.
He remembers taking his own children and became involved, as a driver and maintenance volunteer, when his grandchildren were young.
"I joined as a volunteer 17 years ago and I've been down there every Sunday since. I love it. I absolutely love it.
"It's the kids. Their laughter and satisfaction, the screams in the tunnel. It's a million dollars to the young ones.
"There's been so much interest in getting the trains running again. I've already got three party bookings for December."
The miniature train will run 1-4pm on Sunday and Monday of Labour Weekend and all rides are free.
After that it will run at the same time every Sunday all year round (weather permitting). Rides will cost $2.50 (children aged 3 and under are free).
