PETERSFIELD was blocked off to motorists coming into the town from the Winchester side of the station when the level crossing gates failed on Saturday.
Vehicles backed up along Station Road towards the Bell Hill roundabout on Saturday morning and police set up a diversion.
The problems were made worse by the fact that Frenchamn's Road has been closed for work on a mini-roundabout.
Petersfield police were forced to stop traffic at the Bell Hill roundabout and send drivers back towards the Petersfield Industrial Estate.
Motorists then followed a route past the Petersfield Hospital and eventually back into the town centre.
The road was closed for more than an hour as the gates were repaired by Railtrack workers.
The roadworks at Frenchman's Road are the first phase of development by Railtrack and Quadrant Estates who, last summer, got the go-ahead for major improvements to the station car park and the building of a retail park in the old coalyard.