Cycle tourism business Shebikeshebikes Ltd has received resource consent to operate from the historic building.
''We're really rapt,'' business co-owner Steve Goodlass said this week. The application was considered recently by the Central Otago District Council's hearings panel and it gave consent subject to several conditions.
Shebikeshebikes Ltd was formed five years ago and focused on the Otago Central Rail Trail.
It was based at Omakau, with a satellite operation at Middlemarch, and would continue to run those bases, as well as having a further satellite operation at Clyde, Mr Goodlass said.
The Clyde operation should open in September and would use part of the upgraded railway station building.
The remainder of the building would be used for museum display.
''Now we'll have a base at each end of the rail trail, as well as at Omakau, which is usually the first overnight destination for rail trailers,'' Mr Goodlass said.
One extra staff member would be employed because of the business expansion.
The hearings panel decided the proposal would not have an adverse effect on the amenity values of neighbouring properties or on the wider neighbourhood.
It would have a positive effect in using the existing heritage building.
The business was allowed to open between 8.30am and 5.30pm on weekdays and between 8.30am and noon, and from 4-5pm on weekends.
Other conditions related to signs and an annual review of the conditions.
The application had been notified and four submissions were received, all in support.
At the Clyde site, the business would deal with customers, hire out bikes, and sell cycle tourism products.
A gallery area would be set up to display artworks.
Heritage New Zealand supported the application.
''It is important for their long-term survival that heritage buildings have viable use,'' the organisation's Otago-Southland heritage adviser (planning), Jane O'Dea said.
''The proposal to use the Clyde Railway Station for cycle hire, retail and art gallery would provide a viable use for the building and one which would have negligible adverse effect on the building's heritage values.
''Historically, the railway station has been a transport hub and the proposed activity is consistent with this historic use of the line and Clyde station,'' she said.
A $90,000 revamp of the station building was completed recently.
The project was funded by the Clyde Railway Station Steering Committee, Promote Dunstan, the Central Lakes Trust and the Lottery Grants Board.
