Outdoor recreation and heritage resources have the potential to provide a wide range of benefits to individuals, groups of individuals and the economy. An increased knowledge of these benefits can give recreation managers and planners a better understanding of how their actions and decisions regarding a resource may impact upon the visitors and communities that they serve. Placed within a climate of increasing public sector accountability, this information might also prove useful in justifying the allocation of scarce resources to recreation and heritage preservation. Justifying the value that recreation adds to society is an issue recognised by Benefits Based Management (BBM), a recreation management and planning framework that seeks to identify and target the positive outcomes realised by individuals, groups, local businesses and communities that result from participation in recreation and leisure. To date, recreation planners and managers have not been presented with a BBM research effort that seeks to describe and understand the visitor and community benefits associated with a rail to trail conversion. This study aimed to identify and describe benefits gained by visitors and neighbouring communities, with specific reference to the Otago Central Rail Trail (OCRT), Central Otago, New Zealand. Information was gathered from seventy-seven semi-structured interviews with visiting users of the OCRT, residents of neighbouring communities and trail managers. The results of the study indicated that community stakeholders reported benefits such as local economic development linked to visitor expenditure, heightened sense of community identity and solidarity and social contact with people from outside the local area. An additional finding was that the perceived benefits of the OCRT have reportedly had a positive influence on local people's attitudes towards the rail trail. Visitor interviews revealed that personal and social well-being benefits such as physical activity, aesthetic appreciation, sense of achievement, psychological refreshment, family togetherness and social interaction with friends and local people were outcomes of an OCRT visit. Reported visitor benefits were further linked to physical fitness and health, enhanced mood and positive mental state, leading a balanced lifestyle and stronger relationships within families and between friends. Visitors also perceived that an OCRT visit had forged a greater knowledge and awareness of railway heritage through gaining insight into railway and Central Otago history and appreciation of the engineering skills and craftsmanship associated with 19th century railway construction. Following the benefit chain of causality (Driver, 1994; Driver & Bruns, 1999; McIntosh, 1999), interview responses were linked to potential community and visitor benefits that could be realised off-site such as enhanced quality of life, community satisfaction and a greater connection with and appreciation of New Zealand's historic and cultural heritage.