An electronically controlled grade crossing gate system and method. The system includes a gate arm, a gate arm moving assembly, a position sensor assembly and a controller. The gate arm moving assembly is configured to move the gate arm and the position sensor assembly is configured to sense a position of the gate arm. The position sensor assembly is a non-contact position sensor assembly. The controller is coupled to the gate arm moving assembly and the position sensor assembly and it is configured to receive an incoming command related to the gate arm. The controller activates the gate arm moving assembly in response to the incoming command and communicates with the position sensor assembly to monitor the position of the gate arm.