The 84-seater City Class tram will travel from Woodside to Taylor Street until the end of November.
Professor Lesley said: "This tramway may be small but it is ideal for trying and testing our tram because it has everything to put it through its paces - tight corners, hills, and steep climbs.
"It is a real alternative to other forms of public transport and we will be taking this design outside the UK."
The Trampower concept was based on an academic paper by Professor Lesley in 1987. The original brief was to find a tram which would have a lower operating cost than a bus. This was encouraged by Blackpool Transport Services who were facing difficulties in maintaining their ageing fleet.
Presenting the tram, Scott Hellewell of Trampower said: "Trams are often difficult to introduce in cities because of the perceived high cost of them and the convoluted legal arguments that go along with them. Tram systems often do not operate as well as they should do.
"However, without them, cities face increasing levels of congestion."
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