The tramway was originally planned to be about long from Chapel Milton to Dove Holes. However, it was decided to start the tramway at Bugsworth (now called Buxworth) and, as built, it was about long. Its purpose was to carry limestone from the vast quarries around Dove Holes down to Bugsworth Basin via Chapel-en-le-Frith and Chinley, where much of it was taken by boat along the Peak Forest Canal and the Ashton Canal to Manchester and beyond. The remaining limestone was put into lime kilns at Bugsworth where it was converted into quick lime (or burnt lime).