The Town of Dillon is a home rule municipality located in Summit County, Colorado, United States.

[4] The original town of Dillon was built as a stage stop and trading post on the northeast side of the Snake River.

[8] By 1892, the town had been relocated twice, both times in order to be closer to railroad lines that were extended into the area.

During the Great Depression, Denver Water began acquiring land around Dillon.

In 1956, residents and business owners in Dillon were notified that they would need to sell their property and move out, because Denver Water was about to begin construction on a dam just downstream from the town, and the resulting reservoir (which would help supply water to Front Range communities) was going to flood Dillon and the surrounding valley.

About a mile to the north and approximately 160 feet (50 m) higher in elevation, some land on a hillside was set aside for the current townsite, which is now situated on the shoreline of Dillon Reservoir.