The idea of diverting water from the Colorado River on the Western Slope of the Continental Divide to the productive farmlands of the eastern plains had been a dream of planners as early as 1929.  Subsequently,  a long period of drought and the sagging economy of the “Great Depression” whetted demands for what became the largest trans-mountain diversion project ever built.

The Colorado-Big Thompson Project takes water from Grand Lake on the western side of the Continental Divide to the Big Thompson River on the east.  The water flows through a 13 mile tunnel beneath Rocky Mountain National Park.  In order to supply the residential and farming needs of Northeastern Colorado, the project was begun in 1938 and continued through the years of World War II.  The first water flowed though the tunnel, named for Senator Alva B. Adams, on June 23, 1947.

In order to assure an adequate supply from Grand Lake, a dam was built creating Shadow Mountain Reservoir.  A larger lake, Granby Reservoir was then built below, with a unique pumping plant that forces water into Shadow Mountain.  The Farr Pumping Plant cost over $9 million and provides an additional 700,000 of irrigated land to northeastern Colorado.  Further reservoirs were added, both to supplement the diversion and to compensate the water needs of Western Colorado.  These include Willow Creek and Windy Gap Reservoirs in Grand County.

While most legislators were enthusiastic about the project, U.S. Representative Edward Taylor was vehemently opposed to the reduction of water flowing down the Colorado River.  A compromise was reached in the creation of Green Mountain Reservoir (on the Blue River), which reserves water to replenish the Colorado River.   The city of Denver later claimed upstream water on the Blue River for the massive diversion project of Dillon Reservoir

Claims on the water of the Colorado River range from the fruit and wine regions of the Grand Valley in Colorado all the way to Los Angeles and Mexico.  It can be said that every snowflake which falls in Western Colorado had already been over-appropriated, especially during drought periods in the arid West.

Monarch, now a picturesque lake for meandering around on a pleasant summer day, was once a bustling town, the home of the Monarch Consolidated Gold and Copper Mining and Smelting Company, and the rail head of the Rocky Mountain Railroad.  The life of this little company town and railroad was very short lived and now nearly forgotten. 

Boulder business men T.S. Waltemeyer, and Frank and Charles A. Wolcott heard about traces of gold, silver, and mostly copper at the junction of the Arapahoe Creek and the South Fork of the Colorado River.  In 1905 they established the Monarch Consolidated Gold and Copper Mining and Smelting Company and built their company on the assumption that a major belt of minerals extended east through the Continental Divide.  The Monarch Company consisted of several subsidiary companies including lumber companies, an "investment" company, an exploration company, and a development company.  The main objective of the company was to mine metal ores, but supplement it with timber and build a railway to benefit the whole corporation. 

The company had 1740 acres of placer and lode claims; the main mines were the Copper King, Copper Queen, Omaha, Ella C., and High Lonesome. The Monarch Company shipped heavy machinery by flatbed cars to Granby on the new Moffat Road.  They then put an ad in the paper asking for bids to haul heavy machinery 16 miles from Granby to Monarch.  The machinery included "5 boilers (eight and a quarter tons each), one engine (over eleven tons), one flywheel (6 tons), other machinery (from 1 to 5 tons), a carload of nails, and several hundred pounds of miscellaneous supplies."  The task of hauling the heavy equipment was made especially difficult by mud-holes and bridges not made for heavy loads.  Denver hauling companies refused to take on the job and one Swedish logging company from Wyoming abandoned the challenge after the first wagonload stuck in a mud-hole.

Finally Dick McQueary agreed to move the machinery.  To accomplish the job, McQueary purchased several hundred feet of hardwood planks in Denver, 3 inch thick, sixteen inches wide and twelve feet long.  Accompanying the heavy pieces up the mountain was a "4 horse team hauling hardwood plank, a 4 horse team pulling six inch pine poles, 10 feet long, and a four horse team pulling two ton large nails".   The crew built temporary bridges across mud-holes by laying pine poles 3 feet apart with hardwood planks laid across the poles.  2 light loads were driven across to test bridge followed by the heavy load pulled by 12 head horses.  Finally the planks and poles were pulled up to be used at the next mud-hole.  The heavy machinery was hauled in 2 weeks.

Construction on the Rocky Mountain Railway, a standard-gauge line from Granby to Monarch, began in 1907.  The 16 mile line was completed by Thanksgiving.  There were hopes of someday extending the line to Grand Lake for resort passengers and eventually a line to Walden in North Park.  The Denver and Northwest Railroad Company helped survey the line by lending J.J. Argo's services.  Dick McQueary was once again brought in to grade the road bed between the Monarch mill and Granby.  Most of the workers on the railroad were Japanese, Bulgarian, Hungarian, and Austrian day laborers from an employment agency in Denver.  The laborers were paid $2 a day, (plus a fifteen cent fee for their interpreter).

Once the railway was completed and in operation it issued passenger tickets.  However, the company never published a schedule.  Neither did the company hire a full train crew to run their single locomotive.  To meet regulations for switching service on Moffat tracks in Granby, the Rocky Mountain Railroad took on board a couple of interested bystanders.  At gates crossing ranch properties fireman Leo Algier would simply jump off the train to open the gate and close it after the train had crossed through before hopping back on the train.  Ranching families on the line were allowed to catch rides on the train when it passed through or to request package drop-offs. 

The Monarch Company created Monarch Lake by damming the valley, at the junction of Arapahoe Creek and South fork of the Colorado River, for use with the saw mill and the box factory. A 2800 foot long chute carried tree trunks down the hillside to the lake where they hit the water and could bounce up to 50 ft high.  Then a stern-wheel steamer pushed logs into a system of canals and flumes that led down to the saw mill and box factory. 

The town of Monarch included employee housing, business offices, a post office, and an assembly hall.  Dick McQueary helped haul sawlogs to mill and haul materials for building employee housing in Monarch.  Grand County's first hydro-electric generator was in Monarch.  The waterworks system was created by piping water from the falls at Mad Creek and had pressure up to 300 lbs per inch. 

Even thought the mining company never produced more than $150 a year, the owners continued to promote the business to stockholders and they were able to keep the business running by through their enthusiasm for the project.  During the summer, stockholders were invited to visit Monarch, tour the site, and hear lectures on the operation.  The tour often included a visit to a spruce tree named "Monarch" that was seven feet in diameter.  So, while business might not have been booming, enthusiasm and interest from stockholders was.  

The last piece of Monarch to be constructed was the box factory in 1907.  Unfortunately the factory only operated for 2 or 3 months before it suffered a fire and was totally destroyed.  Robert Black in Island in the Rockies stated that the questionable promotions of Monarch would have been forgiven if the box factory had developed into a solid operation. 

Soon after the fire, a disagreement between management and labor resulted in the entire work force being fired.  For several months the Rocky Mountain Railroad operated the train with one man who acted as engineer, fireman, brakeman and conductor. The company hired Dick McQueary as general manager until fall the fall of 1907 when stockholders discovered the true state of the company and declared bankruptcy.   Stockholders and the community were convinced that the whole company had been created as stock-selling scheme.

Although the Monarch Company and the Rocky Mountain Railroad were no longer in business, the railway continued to be used for a number of years.  For example, Ed McDonald, dude rancher, put a Cadillac touring car on flanged iron wheels to carry mail, supplies, and guests to his ranch.  The center of town was preserved and developed by the Dierks as a summer resort called Ka Rose, after Katherine Rose Dierks, after the owner's daughter.   In 1912 the rail line was used for transporting fisherman along the river by Ernest F. Behr, a former Colorado and Southern engineman.  Finally, in 1918 the rails were sold to a junk dealer in Denver to satisfy the World War I need for scrap metal. 

Currently, the town, mill site, and box factory lay under the waters of Lake Granby and are inaccessible, except in years of draught.  However, there are a couple of remaining pieces at Monarch Lake that are still visible.  On the south side of the lake, near the water's edge, is a boiler that was used to yard logs into a chute and shoots the logs into a holding pond.  Also, the flume still runs down the hillside into the lake.  The trail around Monarch Lake takes hikers directly under the flume.

Jim Bridger spent quite a bit of time in Grand County and has been cited as "one of the three or four most able, influential, and best known mountain men' according to historian Dan Thrapp.  Born in Virginia in 1804, he was apprenticed to a blacksmith in St Louis at the age of fourteen, and in 1822, left to join Ashley's fur trading operation in the Yellowstone area of Wyoming. He claimed to have discovered the Great Salt Lake in 1824, believing it to be an arm of the Pacific Ocean.  He was a co-founder of the Rocky Mountain Fur Company, along with Tom Fitzpatrick and Milton Sublette. 

While Bridger was illiterate, he was noted for both his intimate knowledge of the Rocky Mountains and his prevarications to impress newcomers.  He was engaged in some battles with Indians, but was married to two Indian women; a Ute woman who died in childbirth, and then Shoshone women who bore him two children.

Jim's friendship with Louis Vasquez led to construction of a fort named Fort. Bridger on the Green River in Wyoming.  As a guide, he led the infamous expedition of Sir George Gore through Grand County in 1855, in which Gore killed many thousands of animals and birds.  During the excursion, he would join Gore for luxurious dinners with fine table service and discussions of Shakespeare.  Bridger hired a teenaged boy to read him some of Shakespeare's plays but thought that many of the story lines were just "too vicious or ridiculous". 

He was one of the most sought after guides of the West during his lifetime and guided American troops in the so called Mormon War of 1857-8.  In his later years, Bridger acquired a farm near Westport Missouri, gradually became blind and died in 1873.  His two sons buried him in the present Kansas City, but in 1904, his remains were moved to Mountain Washington Cemetery in Independence Missouri.    Jim Bridger is immortalized with his name being given to many places in the West.

Kremmling started as a general mechandise store, owned by Rudolph (or Kare) Kremmling, on the ranch of Dr. Harris, located on the north bank of the Muddy River. In 1888, John and Aaron Kinsey had part of their ranch platted, calling the site Kinsey City. Kremmling moved his store across the river from the new site and the town that subsequently developed became known as Kremmling. There was a post office established at Kremmling as early as 1885 and the town was incorporated in 1904. 

The Middle Park Fair was established here in 1912. Famous Western Novelist Zane Grey spent time in Kremmling and, as a result, wrote "Mysterious Rider" in which the area is shown as a classic Western setting.

During World War II the town was the location of a prisoner of war camp where German prisoners cut ice that was shipped by rail to other locations.

The local ranching industry, the presence of the railroad and its strategic location at the confluence of the Colorado River, the Blue River, and Muddy Creek made Kremmling a natural location for a town, which still retains the “Old West“ atmosphere.