It comes in the midst of years of acrimony between heritage rail buffs, cycling enthusiasts, and Dorset Council, who continue to disagree on a vision for the rail corridor in the years ahead.

The issue has also sparked a fierce and polarised community discussion.

While supporters of heritage rail want the 64-kilometre stretch of railway - which begins just outside of Launceston and ends at Scottsdale - to be used for a passenger service, cyclists are keen to get a bike track built along part of the line.

The state government has attempted to defuse the situation by proposing a compromise whereby a heritage rail passenger service could run from Coldwater Creek to Turners Marsh and a cycleway from Lilydale Falls to Scottsdale.

Hearings for the upper house inquiry into the viability of passenger rail and a cycleway in the North-East Railway Corridor began in February.

The inquiry, chaired by independent Launceston MLC Rosemary Armitage, is still to hear from Tourism Northern Tasmania, the Association of Tourist and Heritage Railways Australia and the Tasmanian Veteran Cycling Council.

The first of the hearings will be held at the Legislative Council offices at Henty House in Launceston at 2pm on Tuesday, while the second will take place at the same location at 10am on Wednesday.

Hearings are open to the public.