A 3.8 m telescope for very high energy gamma-ray astronomy was installed near Woomera, South Australia in 1991 and started operation in 1992. The construction and operation of the 3.8 m telescope is described, showing the characteristics of the experimental apparatus, such as the electronics circuits and the phototube camera. The field of view of the camera is of 3-degrees diameter, consisting of 220 pixels with each pixel viewing a 0.12-degrees x 0.12-degrees area of the sky. Analysis of acquired data shows the expected features of Cherenkov light from air showers, and it is concluded that the telescope is operating as an imaging Cherenkov telescope. We estimate that the energy threshold for gamma-rays is about 1 TeV.