Josephine, the 21-tonne double-ended Fairlie steam locomotive, has, for more than 80 years, had pride of place at the north end of the Otago Settlers Museum.
It was the first locomotive to run on the Dunedin to Port Chalmers line in 1872 and was retired in 1926, after it was displayed at the New Zealand South Seas Exhibition.
For more than 30 years, Josephine stood dormant on the grass outside the museum, exposed to the elements.
But after a public campaign to save it in the 1960s, it was restored in March 1968 and installed in a purpose-built glassed-in annex to the museum.
Yesterday, it was on the roll again - this time on special load skates, being moved from its enclosed space.
Exhibitions team leader Jennifer Evans said Josephine's removal was to make way for stage four of the settlers museum development.
The move was a "tricky and precise" job, and much care was taken to make sure Josephine was not damaged, she said.
The locomotive was first fixed to the steel railway lines it has been sitting on for the past 40 years, and four large beams were placed under the tracks.
The track and train were lifted by a 70-tonne hydraulic jacking system on to load skates and Josephine was then rolled out through the window - similar to the way it went in.
Yesterday afternoon, it was loaded on to a 55-tonne transporter and, on Monday, it will be taken to a secret storage facility in Dunedin.
Ms Evans said Josephine would be returned in 2012 to a new and much improved site.
"She will be put on the northernmost corner of the newly-completed entrance foyer, where she'll be lit up and she'll have glass on either side.
"The public will have a much better view of her in her new home," she said.
Ms Evans said Josephine's neighbour, Ja1274 (the last steam locomotive built for New Zealand Railways) would also be moved from the museum next year.
It would also be returned in 2012, to a site nearer the Dunedin Railway Station.