To replace the PCC cars that had been used for many years, the US Standard Light Rail Vehicle (USSLRV) manufactured by Boeing Vertol was introduced in 1976.

The MBTA leased and tested the Canadian Light Rail Vehicle (as used by the Toronto Transit Commission) for three months in 1980, but did not adopt the design after finding them unsuitable.

[11][12] As a result of public bidding, the order was won in December 1983 by Japan's Kinki Sharyo, which was aiming to enter the American railroad vehicle market.

[6][2] At the time the order was won in the 1980s, Kinki Sharyo had a track record of exporting streetcars to Cairo and Alexandria in Egypt.

[9]Like the USSLRV, it is a two-body articulated car with both cabs, and the structure is made of weather-resistant high-tensile strength steel that can withstand compressive loads of approximately 65 tons.

The back of the exterior panels is coated with soundproofing material to suppress noise throughout the roof, walls, and floor, and on top of that is densely packed glass wool, which has excellent thermal insulation properties.

Both trucks are manufactured using a steel plate press-welded structure, with conical roller bearings arranged on the wheelset and a disc brake in the center .

In addition to these, a bolster anchor using cushioning rubber is installed between the bogie frame and the sway pillow, which has the function of suppressing longitudinal vibrations, resulting in improved ride comfort and running performance compared to the USSLRV.

After final confirmation tests, commercial operation began in the same year, including mass-produced vehicles that were introduced from May onwards.

[20] The Type 7 was introduced to replace the USSLRV, which was withdrawn from service due to frequent breakdowns, and was well received for its high performance and reliability.

These achievements served as the foundation for Kinki Sharyo to manufacture numerous rolling stock for light rail systems throughout the United States.