The Fidalgo City and Anacortes Railway was incorporated June 30, 1890. Its prospectus indicates an intent to be capitalized at US$250,000. The organizers were Julius S. Potter, C.B. Holman, H.C. Colver, Joshua Pierce. W.A. Potter (? - December 1893) was a trustee. The company constructed and operated a 13-mile (21 km) long electric railway extending from Anacortes, Washington, to Fidalgo City and Dewey Beach (all on Fidalgo Island). It was placed in operation March 29, 1891. This is said to have been the first electric railway in Washington. Operations continued until the collapse of the land boom in the Panic of 1893, when the road was abandoned and the track was removed.
Local lore says that the trolley only ever made one round trip to Fidalgo City, and much of that trip was made behind a horse due to difficulties with or insufficient capacity of the power generator. The line is said to have operated sporadically within Anacortes for the remainder of its lifespan, again, owing to an unreliable power supply system.