McPhee was Colorado’s largest lumber town, established in 1924 by the New Mexico Lumber Company in Montezuma County. You’ll find its remarkable history marked by producing over half of Colorado’s lumber at its peak in 1927. The self-contained industrial community housed 600-1,000 residents before operations ceased in 1946. After a devastating fire in 1948, the town was ultimately submerged when McPhee Reservoir was completed in 1985. Its underwater remains tell a deeper story.
Key Takeaways
- McPhee was established in 1924 by New Mexico Lumber Company and once housed up to 1,000 residents in Montezuma County, Colorado.
- At its 1927 peak, McPhee produced half of Colorado’s lumber output through its extensive 60-mile narrow gauge railroad network.
- The town featured a complete community with housing, stores, and services, including a Catholic church built in 1928.
- Operations ceased after a catastrophic mill fire in 1948, marking the end of Colorado’s largest lumber operation.
- McPhee was completely submerged underwater when the McPhee Reservoir was completed in 1985 as part of the Dolores Valley project.
The Birth of a Company Town (1924)
As the New Mexico Lumber Company broke ground in 1924, the small company town of McPhee emerged in the Lower Dolores River Valley of Montezuma County, Colorado. The town’s establishment marked a significant economic impact on the region, representing the second wave of economic activity in southwestern Colorado.
The birth of McPhee in 1924 heralded a new economic era for southwestern Colorado’s Dolores River Valley.
You’ll find that McPhee was entirely designed and operated by the New Mexico Lumber Company, transforming the narrow valley into a self-contained industrial community.
Housing, stores, and essential services were built to support the lumber mill operations. The company town provided not only employment opportunities but created a reliable market for local ranchers and farmers who supplied goods to residents.
The town’s population would eventually grow to between 600 and 1,000 people, primarily mill workers and their families.
Lumber Empire: Colorado’s Largest Mill Operation
When the McPhee mill reached its operational peak in 1927, it dominated Colorado’s lumber industry by producing over half of the state’s annual output—an impressive 30 million board feet of the total 60 million statewide.
The operation revolutionized timber transportation through its 60-mile network of narrow gauge logging railroads extending up to 26 miles from the mill. You’re looking at what historian Leroy Hafen credited as the operation that transformed Colorado’s lumber production methods. The New Mexico Lumber Company had previously operated in the Pagosa area before moving to Dolores to establish Colorado’s largest sawmill in 1924. Following the cessation of operations in 1946, the town was eventually completely submerged when the McPhee Reservoir was completed in 1985.
- The 150-acre company town housed approximately 1,500 residents, primarily mill workers and families.
- Extensive facilities included a sawmill, planing mill, machine shop, and box factory.
- Rail connections integrated with the Rio Grande Southern Railroad for wider market access.
- The New Mexico Lumber Company developed a regional monopoly with 15 lumberyards across three states.
Life in McPhee: Community and Social Structure
As you explore McPhee’s social structure, you’ll notice a distinct hierarchy with company officials at the top and laborers at the bottom, reflecting the common stratification of early 20th century company towns.
Religious life embodied flexibility and adaptability, with Catholic residents eventually establishing their own church while Protestant workers gathered wherever space permitted—often in the school building. Similar to Dearfield’s community, McPhee residents created strong social bonds despite challenging circumstances.
This “church without walls” approach exemplifies how McPhee’s residents maintained spiritual traditions despite the transitory nature of lumber work and the limited permanent infrastructure of the town. Like many Colorado ghost towns, McPhee represented the hopes and dreams of settlers who built their community in a remote area for economic opportunity.
Lumber Town Hierarchy
The hierarchical structure of McPhee exemplified the typical company town model where social standing directly correlated with one’s position within the New Mexico Lumber Company’s operational framework. This social stratification permeated every aspect of life, from housing assignments to social interactions.
You’d find management personnel occupying better accommodations while general laborers lived in more modest quarters.
- Railroad crews enjoyed elevated status due to their critical role in timber transport
- Skilled mechanics and mill operators formed the technical middle class
- Labor dynamics reinforced economic dependence on the company
- Family connections often determined advancement opportunities within the hierarchy
The 1880 duckbill coach transported employees and their families to Dolores for weekend social activities, temporarily bridging the social divides that existed within the town.
The company’s control extended beyond employment to encompass the commercial, educational, and social spheres, creating an all-encompassing system where your entire existence revolved around your position within the lumber operation’s carefully structured order.
Church Without Walls
Religious life in McPhee transcended physical church walls, creating an integrated spiritual and social framework that shaped daily existence in this company town. When you lived in McPhee, your Catholic faith wasn’t confined to Sunday services—it permeated the community’s social fabric.
Before the 1928 construction of their hillside church, workers relied on company-arranged transportation to Dolores for Mass, demonstrating management’s commitment to spiritual welfare.
The church functioned as a spiritual sanctuary where diverse workers found common ground, fostering community resilience amid demanding labor conditions. This sense of unity and inclusivity exemplified the concept of limitless possibilities that could thrive within a faith community despite physical constraints. Catholic traditions offered stability in this transient environment, particularly for Hispanic laborers who maintained cultural connections through familiar religious practices.
The church’s influence extended beyond worship to include company-sponsored picnics and sports, mediating social tensions while reinforcing the paternalistic structure that defined McPhee’s unique communal identity. Community members often expressed deep appreciation for the wisdom and guidance provided by church leaders, which supported them through life’s challenging moments.
The Final Years and Closure (1946)
As McPhee approached its final years, declining lumber markets coincided with operational challenges that had plagued the company since its dependence on outdated railroad transportation.
The catastrophic fire of 1948 destroyed the entire mill complex, marking the definitive end of Colorado’s largest lumber operation after 24 years of production—six years beyond its intended lifespan.
You’ll find no trace of the original town today, as the construction of McPhee Reservoir submerged the location where workers once toiled under exploitative conditions and inadequate compensation systems. Like many abandoned company towns across Colorado, McPhee represents the boom-and-bust cycle typical of resource-dependent communities. The town was originally situated 11 miles south of Dolores before it disappeared from the landscape.
Declining Lumber Markets
While lumber production in McPhee had reached impressive peaks in the mid-1920s, the subsequent decades witnessed a precipitous decline that would ultimately seal the town’s fate. The Great Depression delivered a devastating blow, with market fluctuations drastically reducing demand for McPhee’s products. Much like the St. Paul Tacoma Lumber Company during the Panic of 1893, McPhee’s operation faced significant layoffs and cuts as economic conditions worsened.
You’ll find that timber competition from other regions further eroded the town’s economic foundation, as builders increasingly turned to alternative materials and sources.
- National economic downturns forced mill closures and widespread layoffs
- Post-Depression recovery remained partial at best, with persistently unstable markets
- Output fell considerably below previous highs by the late 1930s
- Regional competitors modernized while McPhee’s operations remained static
The New Mexico Lumber Company’s inability to adapt to these shifting market realities set the stage for its eventual receivership and the town’s abandonment.
Wilderness Becomes Underwater
The final chapter of McPhee’s existence unfolded dramatically between 1946 and 1948, when economic collapse and natural disaster converged to transform a once-thriving lumber town into an underwater memorial.
After the sawmill ceased operations in 1946, eliminating 1,500 jobs, the economic foundation of McPhee collapsed entirely. With no alternative industry to sustain the community, initial abandonment began.
The catastrophic mill fire of 1948 sealed McPhee’s fate, destroying what physical infrastructure remained and making rehabilitation impossible.
The ultimate transformation came when developers deliberately flooded the town site, creating McPhee Reservoir. This planned inundation converted the abandoned settlement into a submerged history eleven miles south of Dolores.
Today, an underwater ecosystem thrives where lumber once ruled, the ghost town’s remains permanently entombed beneath the reservoir that bears its name.
From Ashes to Water: The McPhee Reservoir Project
Following the decline of McPhee as a timber town, federal authorities reimagined the Dolores Valley through the Colorado River Basin Project Act of 1968, which authorized the construction of McPhee Reservoir and Dam.
You’re witnessing the transformation of a once-thriving lumber community into a vital water infrastructure project that began with groundbreaking in 1977. The 64-foot embankment dam fundamentally altered the valley’s destiny while enabling water sovereignty and economic development, particularly for the Ute Mountain Ute Tribe.
- Construction spanned two decades with dam completion in 1985
- The reservoir provides 8,700 acre-feet annually for municipal and industrial use
- Water travels nearly 47 miles through tunnels and canals to reach the Ute Mountain Ute Reservation
- The project submerged the former company town, erasing physical traces of McPhee’s timber legacy
Preserved in Memory: McPhee’s Historical Legacy
Beneath the placid waters of McPhee Reservoir lies a buried industrial titan once responsible for producing over half of Colorado’s entire lumber output at its 1927 peak.
This submerged ghost town represents a pivotal chapter in Colorado’s industrial development, with its 22-year operational span leaving an indelible mark on the state’s economic history.
The town’s historical significance extends beyond lumber production to encompass early 20th-century company town planning and diverse community development.
When you consider McPhee’s cultural heritage, you’re examining a microcosm of American industrial ambition—from William McPhee’s influential 1924 visit that gave the town its name to the community that supported 1,500 workers at its height.
Though physically erased by the reservoir’s creation in 1983, McPhee’s legacy persists as a marker of Colorado’s evolving relationship with its natural resources.
Frequently Asked Questions
What Was the Ethnic Composition of Mcphee’s Workforce?
Like a mosaic of humanity, McPhee’s workforce blended Hispanic, Anglo-American, and European immigrant laborers. You’ll find this labor diversity reflected cultural heritage through Mexican, Italian, and Eastern European communities working together.
Could Visitors Tour the Mcphee Site Before Reservoir Construction?
No evidence suggests organized tours existed before reservoir construction. Your visitor experiences would’ve been unregulated, without formal touring regulations, as the site wasn’t established for public visitation.
Were Any Structures Relocated Before the Reservoir Filled?
Like scattered seeds of history escaping flood’s grasp, you’ll find numerous McPhee structures were indeed relocated. Historic preservation efforts saved homes, the company store, schoolhouse, and church before reservoir impact submerged the original townsite.
What Happened to Displaced Mcphee Residents After 1946?
You’ll find that displaced families scattered to neighboring towns like Dolores and Cortez, seeking new employment opportunities. The community impact lingered as former residents struggled to rebuild their economic and social foundations.
Did Mcphee Have Law Enforcement or Experience Significant Crime?
Beneath the mountain shadows, you’d find minimal law enforcement—just one company-employed deputy trained by the county. Crime rates remained relatively low under the lumber company’s extensive social control mechanisms.
References
- https://www.nps.gov/parkhistory/online_books/rmr/river_of_sorrows/chap4.htm
- https://en.wikipedia.org/wiki/McPhee_Reservoir
- https://www.ksut.org/environment-climate/2021-11-04/the-land-desk-memories-of-the-river-of-sorrow
- https://www.nps.gov/parkhistory/online_books/rmr/river_of_sorrows/chap1.htm
- https://www.islands.com/1946960/dolores-colorado-town-ancient-pueblo-ruins-outdoor-thrills-quirky-lodging-history/
- https://www.dennisrhollowayarchitect.com/McPhee.html
- https://www.loc.gov/pictures/item/co0095/
- https://www.nps.gov/parkhistory/online_books/rmr/river_of_sorrows/chap2.htm
- https://commons.wikimedia.org/wiki/File:Town_of_McPhee
- http://coloradorestlessnative.blogspot.com/2021/03/last-logging-railroad-in-southwestern.html
