Built in 1901, The Nevada County Traction Company operated an electric streetcar line between downtown Grass Valley and Nevada City. The 4.8-mile route competed directly with the NCNGRR and a horse-drawn stage line for inter-city transportation.
The line prospered for many years until it, too, faced stiffening competition. The increase in local travel by personal automobiles after 1912 led to declining revenues for the line. The arrival of the Grissel & Co.’s auto stage (bus line) in 1923 further cut into the streetcar's share of passengers.
A severe snowstorm in January, 1924 damaged many of the overhead wires and blocked the tracks. The traction company didn't repair the damage and the troubled line permanently ceased operations.