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The earliest trams in Australia operated in the latter decades of the 19th century, hauled by horses or "steam tram motors" (also known as "steam dummies"). At the turn of the 20th century, propulsion almost universally turned to electrification, although cable trams (established in 1885) lingered in Melbourne. In cities and towns that had trams, they were a major part of public transport assets.
In the middle of the 20th century trams fell out of favour, in part because of deferred maintenance during World War II and declining patronage resulting from increased private car ownership. Lines were closed or severely cut back except in Melbourne: its network of 24 routes covering 250 km (155 mi) is now the largest in the world.
Since the turn of the 21st century tramway networks have been reconstructed in Sydney and in Newcastle, extended in Adelaide and brand new systems have been built on the Gold Coast and in Canberra (marking the first time these two cities have had trams).
Restored vintage trams are very popular in their various forms. Most operate on sections of former operational lines such as at Bendigo and at Ballarat in Victoria or on purpose-built tracks in association with museums such as at St Kilda, at Whiteman Park, and at Launceston. Less authentic but invariably popular are replica trams that offer tourist experiences such as in Victor Harbor and in Portland.