The railway was built in 1912; it connected Gmunden - then a successful spa resort - to the agricultural area around Vorchdorf.[2] Early investment in electrification allowed the railway to remain viable where a steam railway would not.[3]
Modern day
The terminus was moved from Traundorf to Seebahnhof in 1990. Today[when?] the historic railway carries a mix of commuter and tourist traffic.[4] It is still operated by Stern und Hafferl Verkehr.
There were plans to extend the Traunseebahn so that it terminates closer to the centre of Gmunden, at Klosterplatz. From there it will be possible to extend the line further, to Gmunden's ÖBB station.[5] The line was connected with Gmunden Tramway at 1 September 2018.[6]