Travelling through the city of Montezuma Creek, the road intersects State Route 262.

The route then travels through the city of Aneth along the Trail of the Ancients, entering the Navajo Nation.

[3] The State Road Commission created SR-262 in 1958, running from SR-47 (now US-191) north of Bluff east and south for 20.0 miles (32.2 km) to a point in the Aneth Oil Field about a mile (1.5 km) beyond the bridge over Montezuma Creek, near the curve to the south-southwest.

[4] A road from Montezuma Creek west to US-191 at Bluff was added to the state highway system in 1986 as SR-163.

[5] At the time, Utah was considering making the road part of an extension of US-163 into Colorado,[6] but plans fell through, leaving an overlap with US-191 and Route 163 near Bluff that became US-163 to the west and SR-163 to the east.