Intercity bus service between Sarnia, Strathroy, Mt. Brydges and London has been given the green light by the Doug Ford government.
The province has confirmed previously announced funding of $1.45 million over five years.
Sarnia Mayor Mike Bradley welcomes the news but says there still must be a competitive process to choose a service provider.
He hopes the service can be in place by mid-year or the fall.
Mayor Bradley said the RAIL advocacy group will continue efforts to obtain additional train service and Friday's announcement may enhance the chances.
"I'm optimistic that RAIL will be successful in getting a second train restored, too," said Bradley. "It all helps, especially with the growth that's happening in the economic investment in the community. It helps with the Lambton College programs with international students, it helps people with healthcare issues, and it helps people that just need basic transportation that's affordable to move in and out of Sarnia."
In all, 39 communities are getting community transportation grants totalling $30 million.
Lambton Shores is getting $2 million for development of a transit system within the municipality.
Mayor Bill Weber said it would greatly benefit area residents.
"I think one of the goals was to have service between municipalities," said Weber. "I think a lot of things have been looked at. Some of it has been service for people getting to work, people to have access for groceries and for everyday travel between the areas."
Weber said a feasibility study still needs to be done to determine whether the service would be viable.
Council will consider the matter at its next meeting in a few weeks.