The system was established in 1976 as replacement for the discontinued bus service provided by Chicago & Calumet District Transit Co.

In February, Thomas McDermott Jr, mayor of Hammond decided to postpone the shutdown until the end of the year in hopes that a funding solution will materialize.

In August 2009, the city of Hammond and Northwest Indiana's Regional Bus Authority met to discuss the system's future.

The rest is paid by RBA, a grant from Northwest Indiana Regional Development Authority as well as a variety of state and federal funds.

With a few exceptions, the route will travel along Calumet Avenue, linking Chicago's East Side neighborhood, the city of Hammond and the town of Munster.

Between January and March 2010, RBA solicited comments and suggestions from the public about what kind of changes it should make.

[8] The route changes were originally slated to take effect in July 2010, but they were postponed until August 2010 to give riders more time to familiarize themselves with the new schedule.