UPDATED 3.15pm: Police have confirmed that the woman, from Claremont, is in a critical condition.
Police further said that flashing warning lights and alert noises were operating at the crossing at the time of the accident.
Senior Constable Kelly Coldwell would like to hear from any member of the public who may have witnessed the incident or saw the woman beforehand.
EARLIER: A woman is in hospital after being hit by a train in the state's south this morning.
TasRail issued a media release on the incident this morning.
The company said the 62-year-old woman was hit at a level crossing on Boxhill Road at Clarement about 9.30am.
She was walking her dog when she was hit by TasRail's 435 service.
Police said the woman sustained serious injuries and was transported to the Royal Hobart Hospital.
Senior Constable John Toohey said the cause of the accident is still to be determined.
Senior Constable Toohey said police were talking to witnesses.
The dog has been taken to a vet, but is unharmed.
Crash investigators and forensic officers are on the scene.
The road is now open to traffic.
TasRail chief executive officer Damien White said the company was deeply saddened by the incident.
''“Our thoughts are with the woman and her family. This is extremely difficult for all involved but I am grateful for the professional way they have responded to what is a distressing event,” Mr White said.