The city has approved a motion to buy 204 new streetcars.
The motion passed 36 to six at a special council meeting on Friday.
The streetcars will cost a total of $1.2 billion. The city will contribute $834 million total towards the purchase.
The Provincial government will contribute $417 million.
The new light rail vehicles will be made in Thunder Bay by Bombardier.
They will replace 248 streetcars the city has used since the 1970s and 1980s.
The city says the new streetcars will be quieter, have air conditioning, and will be able to hold almost twice as many passengers as the current streetcars.
They're expected to start being on the road in 2011, with the car streetcar being rolled out in 2018.
