The concept of a modern tramway to reduce road congestion and promote urban renewal was formally identified during the late 1980s while detailed planning was undertaken during the early 1990s.

The project, then referred to as the Greater Nottingham Light Rapid Transport (GNLRT), received Royal Assent on 21 July 1994 and central government financing was provided in subsequent years.

In March 2000, a 30-year Private Finance Initiative (PFI) concession was awarded to the Arrow Light Rail Ltd consortium, which became responsibility for the design, funding, building, operation and maintenance of the line.

Line 1 runs between Toton Lane and Hucknall, features a total of 33 or 34 tram stops, depending on direction, and has a journey time throughout of 62 minutes.

Financial backing for the second phase was not fully secured until 2011, while the original concession to operate the tramway was terminated on 16 December 2011.

Construction of the second phase commenced in 2012, work was protracted and the extension was finally opened on 25 August 2015, roughly two years earlier than had been originally planned.

Line 2 runs between Clifton South and Phoenix Park, features 27 or 28 tram stops, depending on direction, and has a journey time throughout of 47 minutes.

[8] It has a total length of 32 km (20 mi)[4] As of 2024, the rolling stock consists of 15 Bombardier Incentro AT6/5 and 22 Alstom Citadis 302.

[citation needed] Traditionally, Nottingham's economy was to a large extent based on manufacturing and coal mining, and in the second half of the 20th century the area was affected by the decline in these industries.

[9] The new line proved successful, leading to an increase of public transport use for the Nottingham urban area of 8% in the five years to 2008, together with a less than 1% growth in road traffic, compared to the national average of around 4%.

On 27 July 2009, the GMB trade union held a strike in protest at a proposed pay cut of 0.6% offered by Nottingham Tram Consortium.

A maximum of five trams out of a normal service of 13 ran from 06:00 until 18:00 on the Hucknall route, with replacement buses running a shuttle from Phoenix Park.

[9][20] Approval for phase two was given on 25 October 2006 with the British Government agreeing to provide up to £437 million in Private Finance Initiative (PFI) credits.

The City and County Councils’ application for the order were available to view from 26 April 2007 to 7 June 2007 when it was submitted to the Secretary of State for Transport for consideration.

As a result of Wellglade's ownership of Trent Barton, who operate bus services in the Nottingham area, the new concession was referred to, and approved by, the Office of Fair Trading.

[8][9][29] The severing of the link between NET and Nottingham City Transport, which affected joint ticketing arrangements, may have contributed to a fall in passenger numbers on phase one.

The remainder of phase two finally opened at 06:00 on 25 August 2015, with the route from Toton Lane Park and Ride into Nottingham running the first public service.

Line 2 runs between Clifton South and Phoenix Park, features 27 or 28 tram stops, depending on direction, and has a journey time throughout of 47 minutes.

From here it uses the Ningbo Friendship Bridge to cross the Clifton Boulevard (A52) to the elevated stop at the Queen's Medical Centre, before descending back to street level again.

There are 15 tram stops on the branch, and the journey between Toton Lane and Nottingham railway station takes 30 minutes.

Leaving the city centre, the line continues, calling at Nottingham Trent University and High School before reaching The Forest.

To the north of here is a section of about 1 km (0.62 mi), where northbound and southbound trams follow different streets, crossing at each end to run on the 'wrong side'.

[51][54] NET currently operates the following fleet:[56][57][58] The system started with 15 Incentro AT6/5 trams, similar to those used on the Nantes tramway, built by Bombardier at Derby Litchurch Lane Works.

The Flexity Outlook had also been considered and rejected as its large single-leaf doors did not comply with British door-alarm regulations.

During 2019, another refurbishment was commenced, which includes replacing the floors and internal fittings, a new livery to match the Citadis trams, and a mechanical overhaul to improve reliability.

[25] The first Citadis trams (216–221) entered passenger service for the day on 27 July 2014, as part of a trial for the new timetable, which was then introduced on 26 August 2014.

[68] The validators at each stop also accept payments by contactless credit and debit card including Apple Pay and Android's Google Wallet for single and day fares without the need to buy a physical ticket.

[72][73] NET is run as a concession by a consortium known as Tramlink Nottingham Limited, to finance, build, operate and maintain two new tram lines (known as phase two) and to operate and maintain the initial tram line (phase one), until 20 March 2034 for the grantor, Nottingham City Council.

[83] In December 2012, Nottingham City Council agreed to seek money to conduct a feasibility study on the route.

[93] By mid-2018, a short extension southwards beyond the Clifton South terminus was being investigated, in order to serve the 3,000-home "Fairham Pastures" development next to the A453 road.