The first daytime Sydney light rail run between Town Hall and Circular Quay has gone off without a hitch, the NSW government says.

Premier Gladys Berejiklian and Transport Minister Andrew Constance were on board the tram on Wednesday as it travelled along George Street.

More daytime tests are scheduled in the coming months with the line to Randwick due to open before Christmas.

The premier and her minister boarded the tram – which can hold up to 450 passengers – at Martin Place and disembarked at Circular Quay.

“The overwhelming majority of our citizens will see the benefits from day one,” Ms Berejiklian told reporters.

“When you compare this to what we had before, I think everyone would argue it’s been a great decision. It’s just going to change Sydney forever, for the better.”

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Daytime tests have previously taken place between Randwick, Central Station and Town Hall.

The premier on Wednesday thanked Sydneysiders and CBD business owners for their patience during the four-year construction process which involved legal wrangling with Spanish project contractor Acciona.

The entire project was originally meant to cost taxpayers $1.6 billion but the bill has now blown out to a staggering $2.7 billion.

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Mr Constance insisted the line to Randwick would open before the end of the year while the line to Kingsford would begin operating in early 2020.

His department is also mulling bus network tweaks.

AAP