The busway was proposed in 2004 as a series of busways and bus lanes connecting Downsview Station (now Sheppard West) to York University, to increase speed and reliability on route 196 York University Rocket.
The primary components of the work were a busway within York University, a busway within the Finch Hydro Corridor, and painted bus lanes on Dufferin Street / Allen Road.

Groundbreaking occurred on July 25, 2008, with completion planned for the fourth-quarter 2009 school term.
During construction, it was discovered that a gas pipeline was closer to the surface than had been thought, so the busway in the hydro corridor had to be redesigned to accommodate it.
This caused it to be delayed, and the only part that was open for the fourth-quarter 2009 school term was the busway within York University, which started operation on September 6, 2009.
Consequently, route 196 buses continued to use Keele and Sheppard Avenues.

The final cost of the busway was $37.8 million, of which $18.4 million was contributed by the City of Toronto, and $9.7 million was contributed each from the Government of Canada and the Province of Ontario.
The busway was proposed in 2004 as a series of busways and bus lanes connecting Downsview Station (now Sheppard West) to York University, to increase speed and reliability on route 196 York University Rocket. The primary components of the work were a busway within York University, a busway within the Finch Hydro Corridor, and painted bus lanes on Dufferin Street / Allen Road.
Groundbreaking occurred on July 25, 2008, with completion planned for the fourth-quarter 2009 school term. During construction, it was discovered that a gas pipeline was closer to the surface than had been thought, so the busway in the hydro corridor had to be redesigned to accommodate it. This caused it to be delayed, and the only part that was open for the fourth-quarter 2009 school term was the busway within York University, which started operation on September 6, 2009. Consequently, route 196 buses continued to use Keele and Sheppard Avenues.
The final cost of the busway was $37.8 million, of which $18.4 million was contributed by the City of Toronto, and $9.7 million was contributed each from the Government of Canada and the Province of Ontario.
York University Busway