In 1894, Guelph City Council granted a street railway franchise to local businessman George Sleeman for a term of twenty years, for which the Guelph Railway Company was incorporated in April 1895. Construction began immediately thereafter, using 56 pound rail. The initial route of the GRC was south along Woolwich Street, through the downtown and along Dundas Road, with a second line running from the Sleeman owned Silvercreek Brewery on Waterloo Avenue, to the Canadian Pacific and Grand Trunk (later Canadian National) Railway stations. Total distance of these two lines was approximately . Electrical equipment for 600 volt operation, three closed and two open cars were supplied by the Canadian General Electric Company. A stone car-barn and powerhouse were also built. The carbarn later served as the garage for the Guelph Transportation Commission buses until the 1970s, and still stands today at 371 Waterloo Avenue.