The Hong Kong Government authorised the construction of the 13.1-kilometre-long (8.1 mi) Island line in December 1980, after rejecting plans to extend the tram eastwards to Chai Wan.

[6] On 31 May 1985 the Island line opened with services operating between Admiralty and Chai Wan stations with trains in six-car configuration.

In 2002, the MTRC announced that it would use HK$300 million to construct the West and South Island lines, provided that the Government would award subsidies towards the project.

This brought concerns that the tram system might be abolished when the MTR line was to be built, but a decision to save the tramline was made in 1980; and it serves as a backup in the event of service breakdown and a cheaper alternative for shorter journeys.

The few stations where the platforms are otherwise relatively straight are those on the West Island line as well as North Point, Quarry Bay, Tai Koo, Heng Fa Chuen and Chai Wan.

A retired architect involved in the design of the Island line, Abe Au Kit-tong,[8] explained that the calligraphy is written in large fonts to alleviate the psychological effect caused by the narrow platforms and the curvature of the walls, in addition to reminding passengers what the stop is.

[9] This explains why Heng Fa Chuen and Chai Wan stations do not have calligraphy forming part of their livery, as they are built above ground rather than underground.

List A proposal suggests extending the Island line eastward to terminate at a new Siu Sai Wan station.