Heritage Victoria has approved plans to install temporary boomgates at the Lydiard rail crossing, freeing up work to begin next month.
Works to install new signalling infrastructure at the crossing will take place over the coming weeks.
Under conditions of the Heritage Victoria permit, the damaged heritage gates will be safely stored and subject to regular inspections.
Wendouree MP Juliana Addison says the booms are an interim solution.
"The Andrews Labor Government has invested 10-million to this project and once the design is finalised, it will be shared with the community," she said.
However shadow minister for planning Ryan Smith says action on the gates has been too slow.
"Five-hundred days just seems a ridicules amount of time for a project, where the gates were sitting in a shed in Maryborough, he said.
"This thing has an air about it that stinks and I think people are rightly justified with the government's lack of direction on this."