Premier Nathan Rees told last weekend's ALP state conference that the second stage of the $1.3 billion south-west rail link project would start in the middle of 2010 and would be financed by the sale of assets.

Macquarie Fields MP Andrew McDonald said he was very happy about the announcement, which he said came after a lot of lobbying by himself and other Macarthur MPs.

``The first stage is still being built now, which is the most expensive part, costing $800 million, but the second stage, which will cost $500 million, will start soon,'' Dr McDonald said.

``So now, instead of being a staged project, it will happen together, which is how it was initially planned.''

Dr McDonald said the funds for stage two would be raised by the sale of electricity retailers.

``The fact that the economic crisis wasn't as bad as we expected has also helped.''

Leppington resident Frances Vumbaca said she was that the line will go ahead, even though it will run through the middle of her property. She said the State Government previously offered to buy her property, but for much less than what it is worth.

``I fought the compulsory acquisition order in court, because it just wasn't a fair amount and we won, but then we had all these court costs,'' Ms Vumbaca said.

``So we've been fighting to be compensated for those and we've just got those back.''

Ms Vumbaca is hoping the Government will make a better offer.

``Everyone's sick of having this hanging over their heads,'' she said.

``We'll need to get new valuations done and start all over again.''

Liverpool Mayor Wendy Waller said that Mr Rees's announcement was great news.

``The State Government has continued to buy up land in Leppington this whole time, so I always knew it would go ahead,'' Ms Waller said.

``It's a real win for Liverpool on many levels.

``This is better for the environment of the area and will provide locals with transport, but it will also stimulate development in the area, especially in Edmondson Park.

``We've done a lot of lobbying for this and I'm glad to see that its paid off.

``It's extremely important that the infrastructure for the new release areas goes in before the housing.''

East Liverpool Progress Association president Michael Byrne said the link was necessary for the area, but said it was being used by the State Government to ``win the hearts and the minds of the people'' of the south-west.