The Inland Rail Border to Gowrie project has been dealt a blow after the Coordinator-General rejected Australian Rail Track Corporation's draft environmental impact statement.
Farmers and concerned locals say it's a win but the ARTC says it is business as usual.
Late last month, the Coordinator-General said ARTC needed to provide more information about the environmental impacts of the route.
The office has asked for further information on noise and vibration, traffic and transport, stakeholder engagement, environmental values, flooding, groundwater, economic assessment, social impact, and air quality.
Farmer Tim Durre, who has been in dispute with ARTC over its plans to build the line through the middle of his property at Charlton, west of Toowoomba, said it was a positive result for property owners.
"[It is] a welcome announcement from the OCG which has made its decision on behalf of landholders in the Border to Gowrie section of Inland Rail. Common sense has prevailed," Mr Durre said.
"I'd like to see the federal government acknowledge that this is the wrong route. There are too many issues that haven't been answered."
However, an ARTC spokesperson said the request for additional information was a normal part of the process and they were working through it.
"This sort of request is a normal step in the environmental impact statement process for a major coordinated project," they said.
"The route is locked in and we look forward to continuing to work with the community to progress Inland Rail."
Toowoomba Regional Council infrastructure committee chair, councillor Carol Taylor, said council supported the project but any potential long-term impacts needed to be worked through thoroughly.
"Several legitimate concerns were raised as part of the Border to Gowrie Environment Impact Study process and the time to address those issues is now to ensure the impacts of Inland Rail are positive and sustainable well into the future," she said.
"Consultation and meaningful community engagement is key to ensuring best practice and we must all work together to delivering the best possible outcome for our communities."
Speaking from Gladstone during his northern tour, Deputy Prime Minister Barnaby Joyce said Labor was "stalling".
"I hear that the Queensland Labor Government wants to have a further review [on the line between the NSW border and Toowoomba]. This thing's been reviewed within an inch of its life," Mr Joyce said.
"I think there's one section they're talking about ... I think it's about 67,000 pages in one of the reviews ... it's had 70 pre-eminent scientists with their combined experience over a thousand years.
"It has been reviewed after reviewed after reviewed and now rather than getting into it and getting it started, they want another review.
"Another review. Because they're just stalling, they're stalling. In their hearts they don't really want to build it. In their hearts they don't really want to help the people of Central Queensland."
Labor candidate for Flynn, Matt Burnett, said he was committed to the project.
"Central Queenslanders want to see the Inland Rail project to the port of Gladstone and I'm the candidate that can make that happen."
Want daily news highlights delivered to your inbox? Sign up to the Queensland Country Life newsletter below.
Sign up for our newsletter to stay up to date.