In 1902, Thomas Nevin made application to construct light railways – in effect street passenger tramways – from Cheltenham to Gloucester, Stroud and Chalford. There was relatively dense population in a narrow strip adjacent to the valley floor which the main line railway followed, and the widely spaced stations of the former C&GWUR line had long been the subject of complaint. Recent experience had shown the GWR that passenger tramways could quickly abstract much of the income from local passenger trains. Nevin's application was refused, but the GWR noted that road omnibus competition was already significant and frequent, while their own daily passenger service between Stonehouse and Chalford consisted of only five trains one way and six the other.
