The local railway (Saltsjöbanan), built by Wallenberg and completed in 1893, connects Saltsjöbaden with Stockholm, with its terminus at Slussen.

The railway was taken over by Storstockholms Lokaltrafik in the late 1960s and integrated in the Stockholm public transport system.

Two luxurious hotels (1893) and a sanatorium were built, designed by architect Erik Josephson.

The remainder of the land bought by the railway company was subdivided into plots; with the railway facilitating communications with the city, Saltsjöbaden soon became a popular suburb for the upper and upper-middle classes who purchased plots and developed them with spacious private houses.

The agreement materialized into the social democratic class compromise, or form of industrial relations in Sweden, the so-called "Saltsjöbaden spirit", marked by willingness to co-operate and a cross-class, collective sense of responsibility for developments in the national labour market and in the Swedish economy generally.