A horse tramway opened here in 1882 in 4 ft (1,219 mm) gauge from the promenade at Rothesay to Port Bannatyne. In 1901 it was bought by British Electric Traction and closed on 2 March 1902 for modernisation involving regauging to 3 ft 6 in (1,067 mm) and electrification. Electric services started on 13 August 1902.
On 13 July 1905 a 2⅛ mile extension from Port Bannatyne to Ettrick Bay along a reserved right of way was opened, built by Dick, Kerr & Co. It's not clear if the name Rothesay and Ettrick Bay Light Railway was applied at this time.
On 1 January 1914, control of the company passed to the Scottish General Transport Company. In September 1936 it closed
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Railway Magazine August 1936 page 139 said motor buses were introduced in June 1925 and substituted for trams in winter from 1930. The company had belonged to British Electric Traction, but taken over in November 1931 by Scottish Motor Traction.
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