The Glyn Valley Tramway Trust has received a combined grant of £38,500 from the two authorities so that it can undertake preliminary work to re-instate the tramway from Chirk.
Last Thursday, the Assembly granted the Trust £30,000 to carry out the detailed work required before the reconstruction of the tramway can begin. The grant will be administered through Northern Marches Cymru.
An additional £8,500 was also pledged by the borough council to pay for consultants to undertake preliminary work.
The first part of the project will be a high-level study to look into the detail at the overall future of the original route of the tramway and how it might be reinstated in full or in-part.
The second part will cover the work required for a 'first phase' reinstatement at Chirk.
This will include technical design work, environmental and other reports, including a business plan.
The final part of the preliminary work will be a public exhibition presenting the results of the high-level study.
With the money granted, the Trust hopes that within the next two years steam trains will once again be running on the Glyn Valley Tramway.