Yes Phil, the gauge is normally the distance between the inside edges of the track – well, it would be for a scale 'bullhead' profile (at least it is in Gauge 3) – but a simple 'square' steel section rail might need just a wee bit more width.
(I say "normally" because some gauge widening often occurs on the tighter curves).
But maybe a MES member would be best commenting on this for you.
Regards,
IanT