Downham Way is the main axis of the London County Council's huge Downham Estate, which provided over 7000 houses.

Many of the residents came from Bermondsey and Deptford, so transport to often distant places of work was essential.

The tram line was one of the few services to be introduced at the same time as when the residents moved in, opening in 1928. Initially it terminated at Bromley Road, but was extended the whole length of Downham Way to Grove Park.