The trail section goes from the west end of Borden to Deam Lake Road, a crossing near Deam Lake State Recreation Area.
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The Monon South Trail will follow the route of the historic Monon Railroad, starting in New Albany and spanning across Floyd, Clark, Washington, Orange and Lawrence counties.
Gov. Eric Holcomb announced that the state Department of Natural Resources will award $29.5 million to acquire and construct the 62.3-mile Monon South Trail.