Up until the early 1900s, this area was an open montane valley. Much of the land ward the east of the valley was owned by Mrs. Hannah Barker. The Central Colorado Power Co. selected the location for their new hydroelectric dam project. Mrs. Barker declined to sell her ranch, and the power company filed condemnation proceedings. Mrs. Barker lost her land but was given $23,000 as compensation. Construction on the dam began in 1906 and was completed in 1910. A spur line from the railroad to Eldora enabled trains to haul in material and equipment. The railroad grade can still be seen at times of low water.