The Gate City Street Railroad Company was chartered in 1879. The individuals involved in the formation of the company included Laurent DeGive, Samuel M. Inman, Levi B. Nelson, and Augustus M. Reinhardt. DeGive was instrumental in the founding of Atlanta’s first opera house, and Inman was a respected cotton merchant.

The first line became operational in 1884 and connected Pryor Street with Angier Springs, another resort spot akin to Ponce de Leon Springs which was located just to the north. The line would later be extended to meet the Ponce Springs Line. By 1887, financial difficulties eventually led to its sale to Atlanta’s first holding company for streetcar lines, the Union Street Railroad Company. The formation of holding companies like Union Street would lead to consolidation within the industry, culminating with consolidation under the company that would become Georgia Power.