Completed on 1 April 1916, the line was built specifically to transport visitors from the city to the newly-developed onsen facilities around Xinbeitou.

[1][2] The line was served by single-car DR2100–DR2400 series diesel carriages that made round trips between Beitou and Xinbeitou stations.

Xinbeitou residents successfully petitioned to the government for a branch line, arguing that it was an important transportation link for commuters.

[citation needed] According to the original design, trains leaving downtown Taipei would terminate at either Xinbeitou or Tamsui station.

[11] A proposal was put forth in 2005 that a low-speed maglev train similar to the Linimo in Japan would solve the problem of noise pollution,[12] but its feasibility on operating costs became a subject of ridicule.