Small Tasmanian town hopes to ride on success of new mountain bike trail (ABC)

ABC The rugged terrain of Tasmania's north west is hoped to be a drawcard for bike riders.

A mountain bike trail project in Tasmania's north-east is expected to boost an area hit hard by a dwindling economy.

The construction of world-class tracks at Derby is underway and will be ready to ride by the end of the year.

Like many regional Tasmanian towns, Derby is struggling and Dorset Mayor Barry Jarvis is hoping mountain biking can lead the recovery.

"This will be a huge boost to tourism and open up this area that hasn't had any impact before so this is a huge boost for Derby," he said.

Mountain bikers are always looking for new tracks and Derby is getting part of $4.6 million being spent on trails from Hollybank near Launceston to the Blue Tier near St Helens.

The Derby site will rival some of the best tracks in the country, according to track builder Nick Bowman.

"Its a dream to work here and its going to be a dream to ride here, the trees, the moss, the flowing rivers, its gorgeous countryside," he said.

Thousands of enthusiasts from Australia and overseas are expected to ride the 80-kilometre network of north east Tasmanian tracks each year.

"Its the biggest mountain bike trail project in Australian history," said Mr Bowman.

The appeal of rugged terrain is expected to bring million of dollars to the local economy.

"I've seen this kind of development succeed on all different levels around the country and certainly overseas, and this place has kind of got everything," Mr Bowman said.

The development has Derby residents excited.

"We are a small town and we don't have a lot of people come through so if we can get something out there to bring them in that's good for us," local business owner Vicki Way said.

"There's been a lot of changes and a lot of people leaving the area and we hope this will bring people back and stimulate the business," business owner Patty Hughes said.

New businesses are already looking to set up in the town and cash in on the development.

The Derby trails have already secured a national championship next year.

"As a tourism spot this will be a hot spot in Tasmania," Mr Jarvis said.

The first stage of the Derby trails will be finished by December.

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