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The line was built 1935–1937 and originally operated by the Public Service Company. NJ Transit took over in 1980. For many years, PCC streetcars bought from Twin City Rapid Transit were running on the route. The cars had been built 1946–1949 by the St. Louis Car Company and were sold by TCRT when that system went through a conversion to buses. In 2001, new light rail cars built by Kinki-Sharyo in Japan in 1999 replaced the PCCs. The PCCs are currently stored in the Newark City Subway shop, where they may go to museums or, possibly, the San Francisco Municipal Railway.
In 2002, the Newark City Subway was extended to the suburbs of Belleville and Nutley.
The fare is $1. Passengers must buy tickets before boarding (previously, cash fares were paid on board).