The tramway was authorised by the Colne and Trawden Light Railway Order of 1901.
It was built and operated by Greenwood & Batley of Leeds.
Nuttal and Co were contractors for the permanent way, and R.W. Blackwell for the overhead wiring.

Construction started on 19 May 1903 when the Mayor of Colne, Alderman Varley, cut the first sod.
Services started on the first section on 28 November 1903, and other sections opened in stages until the line reached Zion Chapel on Lane House Lane, Trawden by December 1905.
A branch to Laneshawbridge opened by the end of December 1904.
The system connected with Nelson Corporation Tramways.

Colne Corporation purchased the entire system on 24 March 1914 and the name was changed to Colne Corporation Light Railways.
The tramway was authorised by the Colne and Trawden Light Railway Order of 1901. It was built and operated by Greenwood & Batley of Leeds. Nuttal and Co were contractors for the permanent way, and R.W. Blackwell for the overhead wiring.
Construction started on 19 May 1903 when the Mayor of Colne, Alderman Varley, cut the first sod. Services started on the first section on 28 November 1903, and other sections opened in stages until the line reached Zion Chapel on Lane House Lane, Trawden by December 1905. A branch to Laneshawbridge opened by the end of December 1904. The system connected with Nelson Corporation Tramways.
Colne Corporation purchased the entire system on 24 March 1914 and the name was changed to Colne Corporation Light Railways.
Colne and Trawden Light Railway Company