[6] It is located in the San Juan Mountains in a valley formed by the convergence of Henson Creek and the headwaters of the Lake Fork of the Gunnison River about seven miles (11 km) east of Uncompahgre Peak, a Colorado fourteener.

With the completion of the first road into the mountains in this region, Lake City served as a supply center for the many miners and prospectors flooding into the area.

Beginning in 1915, visitors began coming to Lake City for the entire summer season and by the 1930s tourism had emerged as a viable industry.

The Hinsdale County Historical Society formed in 1973 and began accumulating documents and photographs recording the town's history.

Even though the land was owned by the Utes as part of a treaty that set the area aside as a tribal reservation, by the 1860s prospectors had begun to enter the region in search of minerals.

When rich silver deposits were found in the Lake City area, word spread, and pressure was put on the federal government to negotiate a new treaty with the Utes.

They laid out a 260-acre town site that occupied the entire valley floor - 72 blocks of 32 uniform city lots, 25' x 125' in size.

The initial influx of pioneers, prospectors, and miners attracted scores of merchants and dozens of lawyers and assayers to provide goods, supplies, and services.

The early boom years brought the usual red-light district to Lake City as was seen in any male-dominated mining town of that period.

By 1884, the population was beginning to dwindle, but the arrival of the Denver & Rio Grande Railroad on narrow-gauge tracks that were laid in 1889 cut the cost of shipping gold and silver ores to smelters, and the economy saw an upturn which extended into the 1890s.

[10] In 1889, the Denver and Rio Grande Railroad finished laying track from Sapinero to Lake City; the distance spanned 36 miles, with 10 bridges.

It also linked the isolated location with the rest of the state and nation, encouraging sportsmen and tourists to visit the upper Lake Fork.

[14] In 1874, Enos T. Hotchkiss filed a claim five miles south of Lake City which led to the development of the Golden Fleece Mine.

Results from preliminary work in the mine were promising, and assay determination indicated the property was rich in high grade telluride and gold ore at a short distance below the surface.

Five bodies that showed signs of cannibalism were found southeast of Lake City at the foot of Slumgullion Pass, and Packer was arrested and held in the Saguache jail, but escaped.

Lake City had four churches, a ball park, and a school, but unlike other boom towns - such as Leadville - few saloons or brothels.

Beginning in 1915, visitors began coming to Lake City for the entire summer season, and by the 1930s tourism had emerged as a viable industry.

People had recognized the area's scenic and recreational resources from the earliest days, however, Lake City's remote location had discouraged visitors.

Local merchants accommodated sportsmen; for example, Last Chance Livery and Feed Stable advertised "Fine Saddle Horses" and "Special Arrangements for Fishing and Hunting Parties" at the turn of the century.

[11] In the 1930s and 1940s, Lake City's isolated location and deteriorating buildings gave tourists and summer residents a sense of escaping from civilization.

The Hinsdale County Historical Society formed in 1973 and began accumulating documents and photographs recording the town's history, and has been a strong advocate for preservation in Lake City since then.

Very large daily temperature swings are a regular feature of Lake City's climate, due to the elevation and aridity.