Mike Rann has this week announced a new "Park 'n' Ride" service for the city of Adelaide, with parking costing only $2 a day.
Mr Rann said that with the new service in place, the city could see around 700 fewer cars each day.
The new service, which will travel from the Entertainment Centre to the CBD, is scheduled to begin from the end of February.
With city parking costing motorists up to $50 each week, Mr Rann said the new service has been put in place to encourage city workers to embrace public transport.
"This park 'n' ride is part of our plan to make Adelaide a more sustainable and liveable city. It will reduce car numbers in the CBD and encourage people to use public transport," Mr Rann said.
The Adelaide State Government has purchased six new trams to accommodate the expected increase in passengers.