
Asheville was an isolated mountain town for many decades. But when railroads finally reached the community from Salisbury in 1880 and from Spartanburg in 1886, Asheville grew as a tourist and health resort. But the two-mile trip from the depot to downtown was still a challenge. This journey required climbing hills with a ten and a half-percent grade, too steep for horsecar operation and too expensive for a cable system.
E. D. Davidson of Long Island, New York, who had financed a horsecar system in Halifax in eastern Canada, came to Asheville in early 1888 to explore opportunities. The city of Asheville authorized a charter for an electric railway that would include lines from Pack Square to various sections of the city, including the depot that served the Western North Carolina Railroad (which ran east to Salisbury). Davidson agreed to build the system in close collaboration with Frank Sprague, builder of the Richmond system. John Barnard helped supervise construction and became the company's general manager. The line to the depot opened on February 1, 1889. From the Public Square (now Pack Square), the line extended down South Main Street (present Biltmore Avenue) and Southside Avenue, and then was routed onto Depot Street (west of present-day McDowell Street) to the depot, which was located on flat land in the railroad yard (a half-mile west of Biltmore Village). Ida Briggs Henderson, an eyewitness to the opening events, remembered the excitement: "I can still recall the applause that was given by the people who stood along the sidewalks, watching the demonstration which took place on that day."
Various railway companies organized and built lines to emerging neighborhoods north of downtown; to outlying areas, including the Sulphur Springs resort west of the city; and to Biltmore Village, a town near the emerging Biltmore estate. In 1907 Asheville led the state by carrying three million streetcar passengers (total number of trips by riders), compared to Charlotte and Wilmington with two million each. By 1915 the street railway reached its maximum size, operating forty-three rail cars on eighteen miles of track, including one to the newly opened Grove Park Inn. The streetcar system continued to serve Asheville's tourists and growing population, which reached 28,000 in 1920 and 50,000 in 1930.
Thomas Wolfe, the noted novelist who grew up in Asheville, described the city's streetcars in one of his short stories. "The street-cars ground into the Square from every portion of the town's small compass and halted briefly like wound toys in their old quarter-hourly formula of assembled Eight."
In 1900 most of the city's railways were consolidated into the Asheville Electric Company, the utility furnishing electricity to the city. Although the majority of directors and officers were from Asheville, James H. Cutler of Boston, an agent for General Electric Company, was a major investor in the company. Asheville Electric became Asheville Power and Light Company in 1912, with the majority of the directors at that time coming from New York. In 1926 the company was sold to Raleigh-based Carolina Power and Light Company (now Progress Energy)
A race track was established just south of Strawberry Hill and between the Sulphur Springs railway and French Broad river. A grand-stand was erected and a high fence built around the race track. There were several exciting races all of which were well attended.