When voters approved CapMetro's creation in 1985, the agency was seen not only as the new operator of local bus services but as the developer of a future passenger rail as well.

Future phases would have extended passenger rail service along the entire A&NW right-of-way between Downtown and a Leander station, plus new tracks along South Congress Avenue and Riverside Drive.

[14] MetroRail was presented to voters as part of the All Systems Go Long-Range Transit Plan, which also included expanded local and express bus service.

Additionally, the original 2008 launch date for CapMetro Rail was postponed two years due to multiple safety and construction issues.

[17] On June 26, 2014, TxDOT awarded CapMetro with a $50 million grant for the purchase of four new rail cars, which was anticipated to double capacity, and for general improvements to the Downtown MetroRail station.

[20] Proponents of the station asserted that it will not only alleviate the congestion problems associated with the current downtown MetroRail terminal, but also serve as a cultural hub wherein future residents and visitors can easily access many current and potential amenities, including but not limited, to additional transit systems, shopping, and recreational activities.

[21] CapMetro continued planning for a light rail network running between neighborhoods of Austin's urban core.

In November 2014, when asked to approve $600 million in bonds to be repaid by property taxes to fund the system, Austin-area voters again rejected light rail, with only 43% voting in favor.

In particular, flood mitigation concerns, a Capitol View Corridor, and community engagement had combined to double the downtown tunnel's length to 4.2 miles.

Trains will initially run along 9.8 miles of dedicated street lanes, with the full system to be constructed once additional funds are available.

[31] On January 18, 2011, CapMetro added 13 additional midday trains to the previously limited schedule, as well as increased runs during peak hours.

Each station features an accessible platform with varying canopy designs, ticket vending machines (TVM), bike racks, and informational displays.

The new trains feature a slightly tweaked paint scheme (to better match the MetroBus paint scheme), LED destination displays instead of the flip-dot displays found on the older units, and an updated engine car design that features a rounded top rather than the angled top found on the older units.

researching upgrading access to 4G but is dependent on the carrier offering a commercial-grade product that will work with CapMetro's devices.

As part of Project Connect, CapMetro has built a new station along the Red Line, at McKalla (adjacent to the Austin FC soccer stadium).

In September 2008, CapMetro evaluated the need for rail service to alleviate pressure from congestion downtown to Colony Park, with a potential extension to Elgin.

The Orange Line will operate from North Lamar Transit Center to Stassney & Congress, and will follow the current route of the 801 or a similar alignment.

In 2020, the planned route was truncated in length to reduce construction costs, with bus bridges providing connectivity through the rest of the corridor.

New stations will be North Lamar Transit Center, Crestview (where a transfer to the Red Line will be possible), Koenig, Triangle, Hyde Park (38th), Hemphill Park (29th), UT West Mall (24th), Capitol West, Government Center, Republic Square, Downtown Station, Macc/Rainey, Waterfront, Travis Heights, Lakeshore, Riverside, Faro, Montopolis, Metrocenter, and Austin–Bergstrom International Airport.

[46] The Gold Line is a planned 9.5-mile (15.3 km) bus rapid transit line that would operate from Austin Community College's Highland campus to the South Congress Transit Center park-and-ride, and will travel on Airport, Red River, San Jacinto/Trinity, 7th/8th, Neches/Red River, 4th, Riverside, and South Congress.

Stations will be ACC Highland, Clarkson, Hancock, St. David's, UT East, Medical School, Capitol East, Trinity, Downtown Station (where transfer to the Red, Green, or Blue Lines will be possible), Republic Square, Auditorium Shores, SoCo (South Congress), Oltorf, St. Edward's, and South Congress Transit Center.

[51] In July 2020, planning for the line was reverted to bus service to lower construction costs in response to the economic crisis caused by the COVID-19 pandemic.