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I've been building an HO layout in the past few months. The layout is 9'6" by 4'6". The buildings are actually from a Christmas village. I used these building so that I could consentrate on the scenery and not on building structures. The buildings were 3 for $10 at Zellers. I painted over the snow on the buildings because I did not want to build a winter scene.
The benchwork is constructed of 1/2 inch MDF on 1X6 lumber. I used white styrofoam (I will never use it again) for the base. The hills are constructed of 2 inch pink styrofoam.
The trackwork is Bachmann EZ track. I used black sandpaper for the roads and a tan coloured sandpaper for the sidewalks. The grass is coloured sawdust. I bought the trees 4 for a dollar. The signs and telephone poles are from a starter train set I bought some time ago. Below is a picture of the near complete layout.