A proposal to reopen the line to passengers with two stations at Marchwood and Hythe and trains to Southampton Central was first made in 2009 and was incorporated into the plans for the Restoring Your Railway fund.

[6][7][8][9] On 8 November 2013 Councillor David Harrison of Totton South and Marchwood obtained a copy of the final GRIP 3 Study report and shared it via his website.

The council's report came down against committing further funding for the scheme due to a perceived poor value for money business case, although it said the authority should review the position should local circumstances change.

[14][15] Hampshire County Council announced in November 2017 that it would look again at running passenger service due to planned housing development alongside the Waterside and on the former Fawley power plant site.

[17] In November 2018 Hampshire County Council announced the removal of the Hythe Ferry subsidy, despite there being no progress on the proposed rail scheme.

Campaign for Better Transport went on to say that reopening the line would reduce air pollution and relieve pressure on congested roads adjacent to the New Forest National Park.

The end of the 8-mile (13 km) line would be unused, but a southern terminus, called Hythe and Fawley Parkway, would open on the site of the Hardley Halt station.

The service that Network Rail is proposing is a 2 car Class 158/9, running every 30 minutes between Hythe and Southampton Central.

[26] The business case is due to be submitted towards the end of 2022 to the Department of Transport, with a prospect of getting a decision in early 2024 and passenger services starting in 2025 at the earliest.

[26] A series of public consultations were held between Monday 8 August and Friday 9 September 2022 to hear views on reintroducing passenger services to the Waterside Line.

[27] On 30 November, Network Rail reported that 84 per cent of people backed the proposal to reinstate the line for passenger service.