The Tempe Streetcar's southern terminus, Dorsey/Apache Blvd, is a shared station with the Valley Metro Rail main line.

Tempe Streetcar cars are stored and maintained at the Valley Metro Operations and Maintenance Center, located across the Salt River in Phoenix.

[10] The city of Tempe began studying options for a downtown streetcar in 2007, while construction was underway on the Valley Metro Rail system.

[5] Valley Metro issued a request for proposals to obtain vehicles for the Tempe Streetcar in the summer of 2016.

[13] Potential suppliers originally included Alstom, Bombardier, CAF USA, Kinki Sharyo, Siemens and TIG/m.

Vehicle options for this line included a combination of battery power, overhead catenary or on-board hydrogen fuel system.

[17] In December 2016, Valley Metro selected Stantec Consulting Services for design work to be completed in 2017, allowing construction to start later in the year.

The Brookville Liberty is a commercial off-the-shelf vehicle equipped with lithium-ion batteries, which allows it to operate without overhead power for part of their route.

[20][21] In August 2018, Valley Metro received approval from the Federal Transit Administration (FTA) to begin the initial phase of significant construction on the Tempe Streetcar.

[2][24] As of 2024[update], Valley Metro is in the planning phases of extending the streetcar past its terminus at Marina Heights into Mesa, via Rio Salado Parkway and Dobson Road.

The grant was funded by the Infrastructure Investment and Jobs Act, and will help advance the planning process for the proposed line.