Funicular railway in the Kaunas district of Žaliakalnis is a particularly fine example of the Kaunas government’s attempts to improve the infrastructure of the rapidly expanding city. Among the principal concerns at the time of its construction was a disproportionate distribution of the building activity between the new-town and the Green Hill areas. It has been noticed in the late 1920s that the new-town became a particularly desirable area for new developments. Land and property prices were growing there rapidly too. The Green Hill area, on the other hand, was lacking interest of local investors and developers. Funicular railway was intended to improve the pedestrians’ communication between the two parts of the city. The first funicular wagon opened its doors in the early 30s and shortly after that, the second wagon was ordered. In 1937 the funicular went one of the major reconstructions; two spacious new passenger wagons replaced the primitive-original once and the rail-tracks were improved. Lithuanian engineer N. Dobkevičius was responsible for designing the new wagons, and a Swiss company ‘Theodor Bell’ produced the chassis. Up until this point the funicular is in working order. The existence of such type of transportation highlights one of Kaunas’ most distinctive topographical traits – hilly urban scenery.