Railway modelling (UK, Australia, New Zealand, and Ireland) or model railroading (US and Canada) is a hobby in which rail transport systems are modelled at a reduced scale.. The scale models include locomotives, rolling stock, streetcars, tracks, signalling, cranes, and landscapes including: countryside, roads, bridges, buildings, vehicles, harbors, urban landscape, model figures, lights,. Step 2. Create the terrain of your town. The easiest way to do this is use a baseboard and felt. With your baseboard secure, add layers of fabric to the baseboard. Use lots of fabric on areas that will have hills. Then, cover the entire thing with a big piece of felt to give it a smoother look. For a more realistic look, try this advanced.