In 1983 the New South Wales (NSW) Government began to construct a 35 km freight rail line to provide additional rail capacity to Port Kembla in the Illawarra region, south of Sydney, through a direct connection between the Unanderra to Moss Vale line at Dombarton to the Main South rail line at Maldon in the Southern Highlands. The project area lies within the carefully managed Sydney Water catchment and is also underlain by previous coal mining activities.Construction of the line halted in 1988 prior to its completion after the NSW Government reassessed the demand case and found that the project was not as viable as originally forecast. However, by this stage the line was partially constructed, including the majority of civil earthworks, approach structures to the main river crossings and establishing the portals for the Avon tunnel as a precursor to major tunnelling works.In 2012, the Commonwealth Government funded Transport for NSW to undertake the necessary engineering and environmental preconstruction works. Most importantly here, the 1980s rail link was predicated upon the use of electrically powered locomotives, whereas the locomotive fleet in operation today in NSW is diesel powered. This fact has a significant impact upon the approach and development of the Avon tunnel section, as the diesel powered locomotives combined with the length and grade of the tunnel alignment produces a unique set of conditions requiring specialist engineering design and systems to ensure safe and functional operation of the railway through the tunnel section.Given the above, the Avon tunnel will need to be supported by a ventilation and smoke control design based on the heat rejection from the locomotive consist, consideration of ambient air quality compliance, comparison against in-tunnel air quality goals, and providing safety systems in line with the fire and life safety strategy it requires.This paper explores the current development of both the tunnel civil works responding to the geography, geology, rail functional requirements, as well as the tunnel ventilation systems being revised to suit the diesel locomotives.Further, this paper describes the importance of combining the design outcomes with the procurement methodology in order to achieve the project objectives, a functional outcome and value for money across the project life.CITATION:Baker, T and Bagis, A, 2014. Maldon to Dombarton Rail Link - design development of the Avon Tunnel, in Proceedings 15th Australasian Tunnelling Conference 2014 , pp 487-494 (The Australasian Institute of Mining and Metallurgy: Melbourne).