The Newark Light Rail is a light rail system operated by New Jersey Transit serving Newark, New Jersey. The service is made up of two segments, the Newark City Subway and, somewhat confusingly, the Newark Light Rail. The combined service was officially inaugurated on July 17, 2006. The segments are run separately, with a single transfer point at Penn Station. The fare is $1.25 and is good for one hour on the entire system from the time the ticket is validated. Passengers must buy tickets before boarding and validate them before boarding the train. On the PCC streetcars, cash fares were paid on board (except for a brief period prior to the introduction of LRVs, when proof-of-payment fare collection was instituted).