DL began service in August 1993 and is the designated operator for 88 miles (142 kilometres) of trackage in Lackawanna, Wayne, Northampton, and Monroe Counties.

It was founded by Jeffrey Baxter, Charles Riedmiller, John Herbrand, Michael Thomas and David Monte Verde who continue to make up its corporate ownership.

[2] These are the lines hosting the seasonal passenger trains of both the Steamtown National Historic Site, the Electric City Trolley Museum, and the Erie Lackawanna Dining Car Preservation Society.

[citation needed] The DL is renowned as a bastion for both rebuilding and operating 70+ year-old ALCO diesels on a daily basis.

A new unified color scheme of gray and white with red and yellow stripes was to be applied to GVT system units beginning in 2006 as they exit the South Scranton shops; the most recent being rebuilt ALCO C425 No.