Part of the $80 million State government funded project which delivered a one-kilometre extension along North Terrace, from King William street to East Terrace and an extension along King William Road to the Adelaide Festival Plaza precinct.

The extension of the tram line provided a new service to the bustling East End shopping, restaurant and tourism precinct, while further invigorating the city's cultural and education boulevard. It also helped reactivate vacant sites, including key buildings along North Terrace.