[1] Blue Canyon is located 4 miles (6.4 km) southwest of Emigrant Gap.

In 1866, tracks from the first Transcontinental railroad reached Blue Canyon from Sacramento, followed by daily scheduled train service.

Railroad support services were established including a train station, hotel, worker housing, lunch counter, cookhouse, turntable, water and fueling facilities.

In 1926, double tracking of the railroad was completed, eliminating Blue Canyon as a crew change location.

Summers are generally warm with cool nights, while winters are moderately cold and extremely snowy, despite no month having an average low temperature below freezing.