Vancouver's advanced light rail transit line (ALRT) could prove ultimately to be a useful addition to the region's transit system. This paper examines whether the role envisaged for new rail transit systems in the automobile dominated cities of North America is feasible. Almost 20 years ago when the BART (Bay Area Rapid Transit system) was funded in the San Francisco bay area, it was reasonable to believe that new rail transit systems would be cost-effective. Now ALRT is about to be built in very changed circumstances. Details are given of the public acceptance and political decision making involving rail transit and of the results of demand forecasts and cost-effectiveness studies. Using the results of these studies, the author expresses the opinion that Vancouver's ALRT proposal is fiscally dangerous.