Owned by the Greater Copenhagen Authority (HUR), Lokalbanen was established in 2001 following HUR's acquisition of the share of the railway lines previously owned by the Danish state.

Lokalbanen operated on the lines formerly controlled by Frederiksværkbanen (HFHJ), Gribskovbanen (GDS), Hornbækbanen (HHGB), Nærumbanen (LNJ) and Østbanen (ØSJS), from which it took over operation in May 2002.

Ownership of the trains and infrastructure from the companies is now the responsibility of Hovedstadens Lokalbaner (HL), from which Lokalbanen leased its trains; all HL lines were run by LB.

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