The town of Victor Harbor is located on the coast of the Fleurieu Peninsula, about 80 km south of Adelaide, in South Australia. Victor Harbor was originally home to the Australian aboriginal people, who hunted and gathered in the fertile lands, before the Europeans discovered it in 1802. Today it is a popular tourist destination, and one of the favourite activities for visitors here is to hitch a ride on the horse-drawn tram over a 630-metre long wooden causeway, connecting the nearby Granite Island. This little island is home to a large colony of Little Penguins which are a popular attraction on the island. These penguins shelter on the island during the night, departing in the morning to hunt for fish before returning at sunset.
For many years, goods were conveyed between the mainland and the island on railway trucks drawn by horses. At that time, horses were used instead of steam engines to contain costs. As the Causeway became popular, the South Australian Railways decided to utilise one of their unused horse-drawn passenger trams to offer a service to the island, and in 1894, the passenger horse tramway was established.
The horse tramway operated until 1954, when a dispute between the operators and the local council resulted in the Causeway being reconstructed but without rails. The service continued to operate on Granite Island itself until 1956, when the cars were disposed of. Between 1956 and 1986, a rubber-tyre train provided service across the causeway. 1986 marked the 150th Jubilee of South Australia, and plans for special projects, events and celebrations were laid out. One of the projects was to reinstate the horse tramway and the bid was successful. Replica tramcars were built, tracks were re-laid and service recommenced on 14th June 1986.