Urbanization, which has been one of the most significant parameters of changing social structure since the beginning of 20th Century, has also brought urban transport problems. To cope with these transport problems, traditional vehicle priority policies must be abandoned; modern policies taking individual mobility into consideration must be considered. To increase that mobility, urban rail system projects, which have long been implemented in developed countries, have become widespread in Turkey. These projects that have become the main transport system in many Metropolitan Municipalities have recently begun to be implemented in middle-sized cities. The Erzincan street tramway project, which is the subject of the study, aims to increase the mobility of the individuals in the city and to solve the problems experienced in the traffic. The transportation master plan and feasibility study prepared for Erzincan city aims to apply the street tramway with the aim of developing a modern transportation policy. This article explains the evolving role of rail systems in transport policies used as a tool of social and economic development through the Erzincan Transportation Master Plan and Rail System Feasibility data. In addition to this, the said application are set forth examples of the directions that are the medium-sized cities in Turkey.