Abstract: We demonstrate refinement-based formal development of the hybrid, ‘fixed virtual block’ approach to train movement control for the emerging European Rail Traffic Management System (ERTMS) level 3. Our approach uses iUML-B diagrams as a front end to the Event-B modelling language. We use abstraction to verify the principle of movement authority before gradually developing the details of the Virtual Block Detector component in subsequent refinements, thus verifying that it preserves the safety properties. We animate the refined models to demonstrate their validity using the scenarios from the Hybrid ERTMS Level 3 (HLIII) specification. We reflect on our team-based approach to finding useful modelling abstractions and demonstrate a systematic modelling method based on the state and class diagrams of iUML-B. The component and control flow architectures of the application, its environment and interacting systems emerge through the layered refinement process. The runtime semantics of the specification’s state-machine behaviour are modelled in the final refinements. We discuss how the model could be used to generate an implementation using code generation tools and techniques.