[7] It runs the length of the Embarcadero and San Francisco's segment of the Bay Trail, along pre-existing track used by the F Market & Wharves historic streetcar as well as the N Judah and T Third Street Muni Metro lines and previously unused track bypassing Market Street subway's Embarcadero portal.

[10][9] The extension would serve Fort Mason Center and the Marina district, identified by the NPS as areas with "inadequate regional transit access" and "limited transportation options for transit-dependent residents,"[11] and providing those areas with a rail connection to regional transportation networks via the Market Street subway and the 4th and King Caltrain station.

[14] Light rail service on the section of The Embarcadero south of Folsom Street and on King Street to the Caltrain depot began on January 10, 1998,[15] using a Muni Metro shuttle line between Embarcadero Station and the Caltrain station.

Historic streetcar service on The Embarcadero north of Don Chee Way began in March 2000 when the F Market & Wharves line was extended to Fisherman's Wharf.

The new E Embarcadero line operated on a temporary basis during the 2013 America's Cup yacht races.

On March 28, 2014, the San Francisco Municipal Transportation Agency (SFMTA) officially approved plans for weekend-only service of the E Embarcadero heritage streetcar line starting in summer 2015, with weeklong service starting the next year.