Thomas Alva Edison arrived in Cornwall in 1884 to conduct experiments with electric illumination in the Canada Mills weaving sheds of Canadian Coloured Cottons, power being furnished by a steam driven generator. It was significant at the time because Edison's installation was the first electrical incandescent lighting system to be put into operation in Canada. The experiment was a huge success. Coincidently, Charles V. VanDepoele also successfully demonstrated Canada's first electric railway in Toronto that same year. These events aroused the interest of then Mayor James Leitch, and Wilbur R. Hitchcock, to the point where they would play an important part in bringing streetcar service to Cornwall.

In 1887 the Stormont Electric Light & Power Co. was formed to supply electricty to Cornwall and the surrounding area. In 1896, ten years after a failed attempt to initiate a streetcar service in Cornwall, the Cornwall Electric Street Railway Company was formed. Service began July 1 with four single-truck cars consisting of two open bench cars and two closed cars. The initial route, Pitt Street, was 1.5 miles long and ran south along Pitt Street from the Grand Trunk Railway station to Water Street, turning east on Water to Brennam's Corners. The Second Street route ran from St. Lawrence Park, in Cornwall's east end, along Montreal Road to Marlborough Street, north on Marlborough to Second, west on Second to the Toronto Paper Company mill in the west end. This line was approximately three miles in length. Ridership grew quickly necessitating the purchase of two additional cars in 1897.

In order to generate more revenue, freight service was begun in 1899. One freight locomotive was purchased new to start the service with a second being added the following year. Cornwall had a unique freight switching service whereby freight cars were taken, by electric locomotives, from the GTR (later Canadian National) yards, and the **Ottawa and New York Railway Co., to the Toronto Paper Co., Canadian Coloured Cottons, as well as other local industries. Mail was also carried from the GTR station to the post office.

In spite of what appeared to be a prosperous situation, the railway was somewhat ahead of its time for a town the size of Cornwall. The company soon found itself in such financial difficulties that in 1902 the bondholders (The Sun Life Assurance Co. of Canada) were forced to foreclose. This put Sun Life in the railway business. The company was reorganized as the Cornwall Street Railway Light and Power Co. Ltd. and the charter of 1902 gave the new company not only the power to operate a passenger and freight switching service, but also to distribute light, heat and power, which feature of the charter proved very useful several years later.

Problems continued to plague Sun Life and in 1905 it decided to purchase the Stormont Electric Light & Power Co. Ltd., which was more prosperous. By sharing overhead costs such as offices, personnel, poles for overhead wires and trolley operation, the two companies were able to survive.

A 1915 ruling by the Ontario Railway Board outlawing the operation of open cars with running boards resulted in the three open cars being rebuilt as closed cars. Over the years, several second hand passenger cars and freight locomotives were acquired. Older equipment was then either scrapped, rebuilt, or sold to other railways.

As time went by, more industries established themselves in the Cornwall area. In 1918 the Glengarry & Stormont Railroad (later to come under control of the Canadian Pacific Railway) built a spur line to the middle of the city.

Like most public transit systems, ridership declined following the end of World War II. As well, the streetcars had suffered from heavy use during the war years. The decision was made to replace the electric streetcar system with trolley coaches. All rail passenger service ended on July 27, 1949 with the usual final run ceremonies taking place at the car barns. Car 25 made the funeral run, painted black with moons, and stars, and other decorations. A Cornwall Street Railway official, dressed as Father Time, rode around the Belt Line on the roof of the car. This was followed by one of the new trolley coaches.

Freight operations continued to be provided by the electric freight motors until the line was acquired by the Canadian National Railways in the fall of 1971. C.N.R. diesels soon replaced the electrics with final electric operation taking place on a cold, rainy, Saturday October 9, 1971.