The business case for a Hamilton-Auckland passenger rail service from has been endorsed by the Waikato District Council.

A Hamilton-Auckland commuter rail service is a step closer.

The Waikato District Council is the second local government body to endorse the project via unanimous vote at a special meeting on November 28.

It follows a similar vote by the Waikato Regional Council on November 21.

Mayor Allan Sanson said if they don't try to change how people move between the two cities now, it will never change.

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"If we don't change the way we move people we will be stuck in that jam further up the Bombays than we are now."

Sanson said once it was established people would continue to use the service if it resulted in improvements in the time it took to get to Auckland.

"But if it takes too long to get in there, you will get people moving back to those four wheels. Let's hope it works and only time will tell."

Deputy mayor Dynes Fulton said the benefits for the district would be seen over the long term.

"For the long term, yes it's going to be good to us but initially it might be a struggle to justify sometimes, but we have got to look at the big picture here."

The council agreed that the $240,000 of funding set aside in the long term plan to support a Tuakau rail facility be re-allocated for developing facilities at the Huntly rail station.

These facilities would include shelter, lighting, CCTV, pedestrian access and a park-and-ride.

However, Cr Jacqui Church said the communities in the region's northern towns of Mercer, Onewhero, Tūākau and Pokeno would be "bitterly disappointed" in the project because it appeared the council had ignored earlier wishes to establish a rail service at Tūākau.

Church questioned how the council would manage the impact of this decision on these communities, a stance backed by Cr Stephanie Henderson.

"How are we going to mitigate the fallout?" She said.

Sanson replied that Tūākau and Pokeno had been identified as part of Auckland's metro service, which would travel down to those towns.

This was separate to the passenger rail project, he said.

The council however agreed that a rail facility at Tūākau, given the existing population and planned growth in the area, must be a priority.

The council also agreed to lead a separate business case for a train station at Te Kauwhata to be considered in year three of the start-up passenger rail service.

Total funding needed for the project is $76.27 million over the first six years, from 2019 to 2024, with $66.81 million coming from central government's National Land Transport Fund.

The balance would come from local government with financial assistance from NZTA and rail fare revenue.

The business case now awaits endorsement from the Hamilton City Council before it goes to the NZTA board on December 14 for funding approval.