The upper terminus is next to the Wellington Botanic Garden at the city end of Upland Road, Kelburn's main street (41°17′07.25″S 174°46′04.17″E / 41.2853472°S 174.7678250°E / -41.2853472; 174.7678250).

They are attached to each other by a 30 mm diameter cable, supported by 120 rollers, which runs round a pulley at the top of the hill.

[5] In the mornings and evenings, it is used by commuters travelling between Kelburn and the city; at other times of the day, it is used by people travelling between the city and the Wellington Botanic Garden, by students attending Victoria University and living in nearby student hostels, and by many tourists, especially during summer.

At the end of the 19th century, Wellington was expanding rapidly, and, due to the city's hilly terrain, good building land was at a premium.

When new residential developments were proposed for Kelburn, it was suggested that a cable car or funicular could be built to provide easy access.

In 1898, a number of people prominent in the development of the residential subdivisions founded the Kelburne & Karori Tramway Company.

In 1898, the city council granted permission for the venture, on the condition that it had the option to purchase the operation at a later date.

Fulton was responsible for both selecting the route and deciding the method of operation, a hybrid between a cable car and a funicular.

In 1903, a number of old horse-drawn Wellington trams were converted into cable car trailers, increasing capacity.

In 1933, the steam-powered winding gear was replaced by an electric motor, improving control and reducing operating costs.

In the 1940s, the Cable Car suffered from increased competition: City Council buses ran to Karori and other western suburbs, bypassing it.

On 10 May 1973, a worker on the new motorway suffered serious injuries in an accident when he stepped in front of a Cable Car at the Clifton stop, prompting a review.

The Ministry of Works concluded that aspects of the Cable Car were unsafe, particularly the use of unbraked trailers, and called for the system to be scrapped.

[10] Despite public protests led by Mayor of Wellington Michael Fowler, the line closed on 22 September 1978 for re-gauging and installation of new steel cars and equipment by Habegger AG of Switzerland, becoming a full funicular.

[citation needed] Initially both contracts were won by Harbour City Cable Car Ltd, a joint venture between the Stagecoach Group, which had purchased the buses, and East by West, a Wellington ferry operator.

A new computer was also added to the winding mechanism during the survey which has caused a few temporary issues with how smoothly the cars run.

[citation needed] In 2016, the Cable Car underwent a major equipment upgrade to replace the electric drive and control system.

[16] In March 2022, the windows of the Kelburn terminal building were fitted with decals to help prevent bird strikes, as a wildlife conservation measure.

The initiative was partly funded through crowd-sourcing undertaken by a local conservation organisation, the Urban Wildlife Trust.