[11] After a decision by the NSW Government in 1919 to convert the line into a railway, the tramway was relaunched in 1923 as such with the final extension to Rogans Hill opening in 1924.

[12] However, the line was never successful after its conversion into a railway due to competition with cars and buses on Old Windsor Road (which ran parallel to it) and as a result it closed in 1932.

[14] In 2013, Parramatta City Council published a $1 million feasibility study into a proposed Western Sydney Light Rail Network, designed to improve transport links throughout Western Sydney and meet the challenges posed by the projected rise in population in the region in the coming decades.

The study found that a light rail system was a viable solution to address the growing transport needs of Parramatta and Western Sydney.

[15] As part of its 2014–15 budget, the New South Wales Government announced Transport for NSW would investigate ten potential light rail routes in Western Sydney.

The government allocated $400 million to ensure funds for detailed planning and construction of an initial project would be 'ready to go', should the investigations prove favourable.

[19][20][21] The Strathfield route was supported by The WestLine Partnership, a lobby group consisting of businesses and organisations with a presence in the area.

Property developers building urban renewal projects along the line would provide a financial contribution to the government.

[25] The group also suggested building a branch from Newington to Rhodes and indicated its funding model could allow a route to Carlingford to be built as well.

The government will also adopt the value capture approach advocated by The WestLine Partnership, by instigating an infrastructure contribution on new residential developments along the route.

[29] The government's investigations into the value capture process held up the announcement of the preferred route but would reportedly have allowed the two lines to be built together.

[35] This was confirmed in February 2017, when it was announced that the Westmead - Camellia section and the Carlingford branch would be built as stage 1 of the light rail project.

In November 2020, it was reported that the block of land at Camellia, bought by the NSW government for $53.5 million for the stabling and maintenance depot, was effectively worthless because of high levels of soil contamination.

[41] In February 2024, stage 2 of the Parramatta Light Rail was approved by the New South Wales Government, with the 2023-24 state budget committing $200 million to the project.

The first option would utilise the Carlingford railway line (and stage 1) corridor over the Parramatta River to Rydalmere, where it would then branch.

The second option would leave the main stage 1 route at Camellia and utilise the branch line built to provide access to the tram depot.

It would continue via the Sandown railway line corridor and Grand Avenue, then cross the Parramatta River just east of Rydalmere ferry wharf.

[51] In April 2024, a NSW Legislative Council inquiry into current and future public transport needs in Western Sydney recommended "that the Government urgently investigate extending Stage 2 of the Parramatta Light Rail project so that the line no longer terminates at the Carter Street precinct but continues from there to terminate at Lidcombe railway station.

The Urbos 100 on the Parramatta Light Rail will instead operate in seven modules with a length of 45.5 metres (149 ft), feature onboard batteries and in-ground charging.

At the same time, three consortia were shortlisted to supply the rolling stock, maintain the infrastructure and operate the services:[63][64] The winning bidders were announced in December 2018.

[71] The first micro-tunnel machine was launched in June 2020 from Centenary Square to Parramatta Town Hall and will connect to an existing pipe to extend stormwater capacity.

A second micro-tunnel machine will also be launched from Centenary Square to Lennox Bridge to build drainage and stormwater capacity underneath Church Street.

[79] This would allow major construction to be completed earlier (scheduled in August 2021), followed by a delayed grace period, before installation of stops, testing and commissioning begins.

[86] The closure included Rosehill railway station, located between Clyde and Camellia, which will not be served by the light rail project.

As part of the CityRail Clearways Project announced in 2004, a passing loop was to have been built at Rydalmere, enabling a more frequent service.

[95][96][97] The western end of the Sandown line was reutilised by the light rail to provide access to a tram stabling and maintenance facility.

It consists of two side platforms, and is located directly before the line takes two sharp 90 degree turns onto Harris, then George Street.

It consists of two side platforms and is situated on the site of the former Rydalmere railway station; Yallamundi takes its name from a Darug word meaning storytelling, and primarily serves the nearby Western Sydney University South Parramatta Campus.

The Dundas stop is located just south of Kissing Point Road and consists of two side platforms as well as another power substation and a backup operational control centre in case of maintenance facility malfunctions.

North of the station is the only single-track section on the line;[123] the original Carlingford railway line was single-track, and as a consequence the construction of the major arterial Pennant Hills Road above this section of railway was built to accommodate only one track, preventing modification or removal of the bridge.