Anne Ames, Mr Potts’ granddaughter, said the event was the culmination of six years work after a committee was set up to preserve his legacy.
She said: “We are delighted that Fred is to be remembered by his home town in a way that is visible to all. It is fantastic.”
Reading’s only Victoria Cross winner Frederick Owen Potts was born in Katesgrove in 1892, enlisted in the Berkshire Yeomanry’s Reading Squadron in 1912, and was awarded the highest military decoration for valour after dragging badly injured comrade Arthur Andrews to safety under withering enemy fire.
He used an entrenching shovel fashioned into a makeshift stretcher at Gallipoli during the First World War and dragged Trooper Andrews more than 600 yards to safety. Trooper Potts survived the First World War and returned to Reading to become a master tailor but died in 1943 after suffering throughout his life from his wounds.
Cllr Pete Ruhemann, chairman of Reading’s planning committee, issued a public appeal in November 2012 for people to suggest street names relating to key people and events in the town’s history.
Tropper Potts’ grandson, Bob Binham, told The Chronicle: “It’s great that the sign is right besides the railway area and more than that, it’s important that it has been named by members of the public.
“I hope people who see it recognise not only what he did, but all those who fought during the wars.”
Reading’s planning leader, Cllr Tony Page, said the sign was the first of a number of events which will honour the hero.
He added: “The name of Trooper Potts will be seen by the many thousands of people every day who use Reading Station and it is therefore a fitting location in which to name a road after Reading’s own war hero.”