The tramway was immediately popular and it was not long before work began on the first proposed extensions which were a long southern branch line to the town of Sebastopol via Skipton Street Redan and Albert Street, and two northern branch lines to service the city's suburbs along Drummond Street North and Soldiers Hill.
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The Sturt Street route proposal was dismissed by Ballarat MP and Regional Australia Minister Catherine King in the lead up to the Australian federal election, 2013, claiming that at a cost of $90 million, the project would be too expensive, indicating instead a preference to invest in local sporting facilities.
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