Authority to build the tramway was granted by the Great Orme Tramways Act of 1898, and construction started in 1901. The tramway was opened in its two stages: the lower section on 31 July 1902 and the upper on 8 July 1903. The original power house, at the Halfway station between the lower and upper sections, was equipped with winding gear powered by steam from coke-fired boilers. Communication between the power house and the tram cars was provided by a telegraph system, operating over an overhead wire and trolley poles on the cars.