Archaeological records indicate that the area has been inhabited for around 11,000 years. When Caucasians first arrived they found groups of Utes living in the mountain valleys in the summers and the lower elevation mesas and valleys in the winters. With the end of the Civil War came the mass settlement of the West. The fertile valleys were cleared and water was diverted from the rivers and streams to produce farms and ranches. The pace of change escalated with the discovery of silver and gold in Colorado. Swarms of prospectors combed the mountainsides searching for wealth. Despite the efforts of Chief Ouray, a highly respected Ute leader, the Utes were moved to reservations in Southern Colorado and Utah in 1881.

The cities and towns of the area, including Telluride and Ouray and several that have long since vanished, sprang up. At the time of its incorporation in 1876 the City of Ouray had a population of 400, eventually grew to over 2,000, and is today at around 750 people. Telluride experienced booms and busts and presently has a resident population of about 2,000.

Agriculture expanded to feed the miners and others. Farmland was used for grain and hay production in the summer and for winter pasture for livestock. Sheep and cattle were driven into the mountains in the summer and the huge herds were brought out in the fall. Many were driven to distant cities or loaded on trains for transport to market. Logging also developed to supply fuel, raw materials for buildings, mine shaft supports, railroad trestles and ties, and other wood products.

Thousands of prospects and mines were worked and some became significant. Tunnels connected the Ouray side of the mountain to the Telluride side. Engineering feats abounded and aerial trams accessed the most rugged and steep locations. Evidence of the determined miners is seen on the mountainsides and precipitous cliffs.

Otto Mears was the celebrated road and railroad builder of the area. His engineering and construction work opened up the area to the rest of the country. Toll roads connecting the remote communities with the outside were blasted out of the mountains and not long after railroads were laid on some. The railroad brought civilization and economic transport and was received enthusiastically.

The Rio Grande Southern railroad, built from Ridgway to Durango through Telluride, connected to the Denver Rio Grande Railroad, which had reached Montrose in 1882 and reached the City of Ouray in 1887. In November of 1890, passenger service began between Ridgway and Telluride continuing on to Ophir, Rico, and Durango. The Rio Grande Southern ceased operations in 1951 and the grade was abandoned and the tracks removed.

Mining dominated the economies of the area, despite major bust periods, until the 1970’s when it suffered a decline that it has not recovered from. Today, the dominant economic sectors are the service and retail industries. Tourism has replaced mining’s importance in the economy and the area began a slow recovery from the bust of the seventies. Summer tourism is to Ouray what winter skiing tourism is to Telluride. Both types of tourism have led to second home development. Development has led to rapid growth, especially in the last few years, prompting changes in the land use policies of the counties to protect the environment while accommodating growth. The State Demographer projects growth of over 4 percent for the next few years.