PASSENGERS who travel on overground trains in London will soon be able to use the Oyster card pre-pay travel scheme.

The decision to install the necessary machinery at stations across London will delight Waltham Forest residents who have complained loudly that they are barred from the savings that go with pre-paid Oyster cards.

London Mayor Ken Livingstone and new Transport Secretary Douglas Alexander announced that Transport for London would pay for Oyster validation equipment in all London rail stations.

It will also work with the Department for Transport to ensure equipment will be able to accept other smart cards.

Currently bus, tube and Docklands Light Railway passengers can use Oyster pay-as-you-go.

On the overland however, Walthamstow Central is the only Waltham Forest station on the Liverpool Street to Chingford line to have the equipment for pre-paid card users.

They cannot be used at all on the Silverlink Gospel Oak to Barking line.

At the moment there are only 60 overground stations in London where passengers can use the Oyster card with 310 stations in London zones 1-6.

Thanks to this new agreement, pre-pay will be rolled out to all of them over the next few years.

Jennette Arnold, London Assembly member for Waltham Forest, is celebrating the success of a campaign to get Oyster pay-as-you-go for national rail users.

Ms Arnold said: "Thousands of the people I represent need to use national rail to get around the capital.

"It is only fair that they should be able to get thesame benefits as Tube passengers. I am thrilled that this agreement has been reached.

"It is a key step towards a properly integrated system that will allow people to move between rail, Tube, DLR, tram and bus using an Oyster card, without having to buy separate tickets."

The introduction of Oyster technology could start this year at gated stations and be rolled out during 2008.