Torquay developed as a seaside resort during the nineteenth century, spreading across the hills above Tor Bay.

These schemes failed to get started, but in 1902 the Dolter Electric Company was invited build a line instead that would use their stud-contact system of electrification.

A poll was conducted of the ratepayers of Torquay; a small majority was in favour of a tramway being built but not for the council to either build or operate it.

An Act of Parliament was passed on 15 August 1904, authorising a network of 8.92 miles (14.36 km) 3 ft 6 in (1,067 mm) gauge tracks and the Dolter power supply.

The council in Paignton insisted that the tram's power supply in their town was to be by overhead trolley wire rather than the Dolter stud system.

[2] Work on erecting trolley wires above the existing tracks started late in 1910 and was completed on 6 March 1911.

[3] In 1920 the company started to operate buses to Newton Abbot and beyond but in 1922 they were transferred to Devon General when that business became a subsidiary of the NECC.

[3] With the aim of extending further into Paignton, permission was sought in 1933 to convert to trolleybuses, but the Western National Omnibus Company objected and the necessary Act of Parliament was not passed.

[3] The location of the electricity generating station and depot was changed before construction was started, so some of the tracks authorised by the initial Act of Parliament were not built.

A petrol tank exploded on 3 June 1921, destroying the body of one bus and damaging two trams, five other motor vehicles and the sheds.

At 9-foot (2.7 m) intervals a box was fitted between the rails that contained a stud (which protruded about 1 inch (25 mm) above the road) and a bell crank.

[2] Each tram car was then fitted with a bell connected to a special contact arm to warn the driver if a stud remained live after it had passed.

[2] Trams were painted maroon lined in gold or yellow with the window pillars, rocker and upper deck sheeting in cream.

[4] The Devon General Omnibus and Touring Company had started bus services between Exeter and Torquay in 1919 with three vehicles and soon expanded their fleet and area of operation.