Land value gains attributable to the light rail system in Gold Coast, Australia, are estimated. Using a panel of statutory land valuations, a model of location‐specific gains allowing for price effects at multiple distances from stations across time is estimated. Total value gains to nearby landowners are in the range $240–$314 million, around a quarter of the project's capital cost. Scope to fund transport investment from value gains is apparent, and the city council and the state government have the administrative structures to recoup funds from benefiting landowners. Exemptions and budgeting practices mean little is recouped in practice.