We report structural, magnetization, electrical resistivity and nuclear- and electron spin resonance data of the complex transition metal oxide In_2VO_5 in which structurally well-defined V-O chains are realized. An itinerant character of the vanadium d-electrons and ferromagnetic correlations, revealed at high temperatures, are contrasted with the insulating behavior and predominantly antiferromagnetic exchange between the localized V^{4+} S = 1/2-magnetic moments which develop below a certain characteristic temperature T* ~ 120 K. Eventually the compound exhibits short-range magnetic order at $T_SRO ~ 20 K. We attribute this crossover occurring around T* to the unusual anisotropic thermal contraction of the lattice which changes significantly the overlap integrals and the character of magnetic intra- and interchain interactions.
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