The picture posted is of the Puffing Billy Railway located outside of Melbourne, Victoria, Australia. The engine and cars are original to the line it operates over. It is a 2'6" narrow gauge line.
The line was shortened on the Melbourne end by several miles in order to extend the 5'3" broad gauge electric commuter line. You can get to Puffing Billy by riding the commuter trains and that is what I did. Just make sure to use the Myki(fare card).
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