The Manawatū Tram Trust aim to make the region a leader in emission-free public transport.

Volunteers have been working to make this possible. The concept of an electric, heritage-styled trackless tram around The Square in Palmerston North was raised in 2000, and this led to the formation of a Charitable Trust to investigate the feasibility, promote the concept, and showcase local engineering capacity. Given the undesirable effects of fossil fuel use, this type of transport is the way of the future. Locally-generated electricity would be used to power a network of iconic trams with state-of-the-art traction, control and management systems. This would allow park-and-ride to the city centre, and help move shoppers around the CBD, more easily than private cars. Research has shown that pedestrian shoppers spend more than those that drive in and destination-shop.

In 2002 a proposed route was submitted to Palmerston North City Council, and approved in principle by PNCC and other local and regional government bodies. It is also proposed to design and manufacture the trams locally.