The agency was established by the Louisiana State Legislature in 1979, and has operated bus and historic streetcar service throughout the city since 1983, when it took over the city's mass transit system after nearly six decades' control by New Orleans Public Service, Inc. (now Entergy New Orleans).

City buses were used before Hurricane Katrina hit to transport people to a refuge of last resort, of what's now the Caesars Superdome.

Almost eighty-five percent of the fleet was rendered useless and inoperative; 146 city buses were visible outdoors in the flood at the 2817 Canal St. facility, while only 22 were at 3900 Desire Pky.

The damaged streetcars, which had been built by hand on the property by local workers, were repaired in the same facility with components from Brookville Equipment Co.[2] As of 2007[update], service had been restored to certain areas as they became habitable again.

Claude Avenue streetcar from Elysian Fields to UPT via Rampart St. and Loyola Ave. Loyola/UPT line will no longer operate on Canal St. to the river, nor on Riverfront to the French Quarter stop.

Decrease travel times for riders from farther-out neighborhoods by operating Lines 88-St. Claude and 91-Jackson/Esplanade with fewer stops along Rampart to Canal.

For 4 days after the new routes started, RTA offered free boarding on all buses, streetcars, and the Algiers Point Ferry.

[5] The changes were part of the New Links Network, a project designed to upgrade the transit authority to service the people of New Orleans.

[7] On July 18, 2022, the authority released Le Pass, a new trip planner and ticket app.

The RTA Board has the overall authority for transit in New Orleans including setting fares, overseeing service and operations, developing operating budgets, approving each year's annual transportation development plan, and deciding upon capital purchases and expansions.

Transdev handled operations and service, safety issues, vehicle maintenance, customer care, route design and scheduling, human resources, administration, ridership growth, capital planning, grant administration, communications, purchasing, and other agency functions.