The provincial government began a subsidy program for transit throughout BC through BC Hydro in 1972 and later through the Bureau of Transit Services in the Ministry of Municipal Affairs beginning in 1976. In 1978, the Province created the Urban Transit Authority (later renamed BC Transit) which in 1979 included the Municipal Systems Program.

Prior to the creation of BC Transit, transit systems had already been provided in several communities. For example, the Victoria Regional Transit System, the oldest in the province, began operation in 1890 while the Nelson Transit System has been in service since 1899.