Expressions of Interest are open for local councils, businesses and community groups to boost their tourism economies and create rail trails along sections of the disused corridors.
The NSW Government will provide $50 million funding towards the trial.
Rail trails are popular attractions around the world and offer cycling, horse-riding and walking activities. They also reinvigorate disused rail lines while boosting tourism, generating jobs and providing access to new areas that were previously inaccessible.
The trial follows an independent report that ruled out trains on the disused Northern Rivers train line as a viable regional transport option.
Minister for Regional Tourism John Barilaro said the government would consider rail trails in other regions once the Northern Rivers pilot assessments were complete.