Steep forested mountains and cliffs surround it, with Bridal Veil Falls situated at the canyon's head.

In June 1889, Butch Cassidy, before becoming associated with his gang, the "Wild Bunch", robbed the San Miguel Valley Bank in Telluride.

Work conditions were treacherous, with mines above 12,000 ft (3,700 m), a lack of safety measures, and bitter weather in winter months.

Telluride's labor unrest occurred against the backdrop of a statewide struggle between miners and mine owners.

The disappearance of mine guard William J. Barney, which Wells declared a "murder", created much intrigue and national interest.

Idarado kept the underground workings and mill operations open at Telluride's Pandora hard-rock mine until 1978.

When the mine officially closed, the snow which tormented Telluride's miners became the town's new source of income, in the form of skiing and tourism.

The documentary video "the YX factor" chronicles the transition from mining to skiing and the influx of "hippies" in the late 1960s and early 1970s in the words of local residents and commentators such as Peter Yarrow and Tom Hayden.

Mining families were replaced by what locals referred to as "hippies", young people with a 1960s worldview that often clashed with the values of Telluride's old-timers.

These newcomers were characterized as idle "trust funders" drawn to the town for a casual lifestyle and outdoor excitements such as hang gliding, mountain climbing, and kayaking.

At one point, a serious effort was made to ban cars from the city limits and force visitors to use horse-drawn carts.

They exposed hundreds of thousands to the grandeur of the valley for the first time and created iconic associations with elite entertainers.

[citation needed] As the final ore carts were rolling out of the Pandora mine, tourists began to discover Telluride's views, skiing, and autumn color changes.

After the brutal snow drought of 1976 nearly wiped out the embryonic ski and lodging industry, the town started to rebound economically.

In 1978, Ron Allred and his partner Jim Wells bought a stake in the ski area to form the Telluride Company.

During the 1980s, Telluride developed a reputation as "Colorado's best-kept secret", which paradoxically made it one of the better-known resort communities.

Wealthy skiers flocked to the mountain all winter, and sightseers kept hotel rooms full all summer.

Telluride also became notorious in the drug counterculture as a drop point for Mexican smugglers and a favorite place for wealthy importers to enjoy downtime.

The town was even featured in the hit song by Glenn Frey from Miami Vice, "Smugglers Blues".

The festivals and Telluride's bad-boy image attracted celebrities like Tom Cruise, Oprah Winfrey, and Oliver Stone.

By the mid-1990s, Telluride had shed both its mining personality and drug image to establish itself as a premier resort town balancing modern culture with fascinating western history.

In 2003, Prospect Bowl, an extension to the ski area opened, providing the resort with many new trails and runs.

Major airline service is provided seasonally into Montrose (MTJ), approximately 70 miles (110 km) north by road.

Precipitation peaks as snow in winter and as thunderstorms in summer with a dry period in late spring.

The bus system, called Galloping Goose, makes a complete loop around the town.

[22] In Justin Cronin's 2010 novel The Passage, Telluride is the site of a secret military compound used to test a purported "longevity drug" on death row inmates.