The federal and New South Wales governments have approved up to $385 million in funding to restore access into a rural community near the Blue Mountains that has been severely restricted for three years. The sole 130-year-old road into the Wolgan Valley was closed in November 2022 after record rainfall triggered multiple landslides. Lithgow City Council made the closure permanent in January 2023, following an engineering firm's assessment of the road's risk. A steep, four-wheel drive track known as the Donkey Steps was established later that month and has been the only access point for residents and visitors since. Wolgan Valley Association (WVA) president Andrew Chalk said the community felt a "huge sense of relief" when the funding approval was announced by the council on Tuesday. "Three years of uncertainty has now been answered with the confidence that we will get some proper means of driving in and out of the valley," he said. Long wait worries locals Lithgow Mayor Cassandra Coleman said the council was considering multiple options to restore access to the valley, including the construction of a new road. Mr Chalk said the prospect of a lengthy wait for a new road was a matter of concern. "On council's time-frame, they're talking about seven years," he said. The Donkey Steps route is unsuitable for heavy vehicles and two-wheel drives, which is less than ideal for the many farmers in the region. "People need to get stock in and out, feed, materials and heavy equipment," Mr Chalk said. "It's just not possible to operate over that extended period." The valley is also a popular tourism destination and several accommodation businesses have suffered due to the closure of Wolgan Road. A luxury resort owned by Emirates has been mothballed since June 2023 and dozens of staff have lost work. $60m to fix old road Mr Chalk said there were some families in the valley prepared to wait for a new road but most residents wanted the council to fix the existing one. He said he and other community members had sought independent advice from engineering experts who believed the existing road could be fixed in a timely manner. "They [council] have turned what we think is a manageable problem into a giant one," Mr Chalk said. Engineering firm WSP Golder estimated it would cost more than $60m to repair the damaged 2.7-kilometre stretch of road to a level of "marginally acceptable" risk. It recommended Lithgow City Council consider an alternative access route that could provide a more "resilient," "cost effective" and "future-proofed" solution for the valley. The council commissioned investigations into other options and applied for $326m worth of disaster recovery funding last year from the state and federal governments to cover the project. The upper limit approved for the project grew by almost $60 million. Assessing alternatives Cr Coleman said the council would work with the WVA to deliver a road that worked for the community. "We will take on any feedback they have and we will funnel it through both to Transport for NSW and other agencies that are helping us to deliver this project," she said. The council has commissioned another engineering firm, GHD, to conduct a second risk assessment of Wolgan Road to determine whether it could be temporarily or permanently reopened. In the meantime the council will progress two other new road options through the planning process. "We will be exploring multiple options in regards to what the outcome will be," Cr Coleman said. "The residents down there need certainty, they need access, and we've worked with them and in partnership with [governments] to ensure that this occurs." Transport for NSW said it was committed to restoring access to the valley and would support the Lithgow City Council through technical investigations and project development. "Design and development activities to restore access, which includes confirmation of a preferred alignment, will continue," a spokesperson said in a statement. The council must meet stringent program requirements regarding time and cost-effectiveness throughout the delivery of the project to remain eligible for the funding.