Horse-drawn trams were first mentioned in Torquay in 1859, but the proposals were discussed for many years before work began on the tram system. It was not until the beginning of the 20th century that the tram system was constructed. The route was from Beacon Quay to Torre Station, to St Marychurch and Babbacombe on two lines in a circular route through Wellswood and Ellacombe to Torquay station. It took 18 months to build the system and many roads were closed for this work. Although local people used the trams, they were a particular attraction for visitors

The trams used electricity supplied through a surface contact system. This meant the power was between the rails in the ground. Unfortunately this could be dangerous and horses were electrocuted and people were at risk too. So after a few years they changed to overhead power supplies.