The Central California Traction Company (incorporated on August 7, 1905) was originally setup as a second streetcar line as an alternative to the Stockton Electric Railroad.

The electric passenger train service between Stockton and Lodi began in 1907, in direct competition with Southern Pacific Railroad. By August 1910, the railway line had reached Sacramento to cater for passengers and freight. The freight service carried livestock and produce (mainly grapes, strawberries and sugar beets). At its Peak, The Central California Traction Company was operating 36 passenger trains a day, as well as freight trains.

The Central California Traction Company used overhead wires in the cities of Stockton, Lodi and Sacramento, but power between the cities was fed by a covered third rail that was energized at 1200 volts DC. The Central California Traction Company was one of the first railroads to use the high tension DC power in the United States.

In 1933, the last interurban passenger train made its final run but the freight operations continued. Demands on power created service problems and in 1946 The Central California Traction Company made the switch from electricity to diesel with the arrival of a pair of GE 44-tonners.

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