The South Australian Labor government has committed to returning trams to an inner-Adelaide retail precinct if it wins the March election.
Premier Jay Weatherill says the $279 million three-kilometre extension will mark the return of trams to Norwood Parade for the first time in more than 60 years.
"Expanding our tram network will attract investment, boost economic growth and encourage urban renewal," Mr Weatherill said on Sunday.
Mr Weatherill said the project was expected to support 145 jobs each year during the two-year construction phase.
The new line will incorporate five new stops and will link up with an extension along North Terrace that is near completion.
"There will also be jobs and prosperity associated with the better connections between the city and Norwood," the premier said.
"This is part of a broader investment in our tram network which is about opening up jobs and prosperity to the metropolitan area."
But Opposition Transport Spokesman David Pisoni said voters should not believe the Labor promise of the Norwood line.
"Announcing extensions of the tram network before an election and dropping them after the election is a parlour game Labor plays with the electorate," Mr Pisoni said.
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