Pioneering explorer Alexander Ross visited the valley in search of beaver in 1821. The Hudson's Bay Company reported the area as "promising." Ketchum's short mining era began in 1879, after the Sheepeater War and the relocation of the Native American population. Ketchum was named after David Ketchum, the prospector who discovered the first lead and silver deposits in the valley. He built a log cabin on the Wood River, lived in it for one winter, made money selling his real estate interests, and left never to return. In 1880, the City of Ketchum was formed near Warm Springs Creek along the Wood River. Taking advantage of a year round water supply, the Philadelphia Smelter, off Warm Springs Road, began operating in 1882, complete with some of the nation's first electric lights. The Oregon Shoreline Railroad reached the area in 1884.
In the 1890s the smelter processed ore from mines as far away as Challis. After a decline in silver prices, Ketchum residents, mostly miners, began to leave. Ketchum soon rebounded. The city became a premier sheep-shipping center and a popular destination for tourists seeking to "take the cure" at area hot springs. On January 16, 1936, the area's future reputation as America's first world class ski resort began. Union Pacific owner W. Averell Harriman ended his search with a declaration from the Austrian
Count Felix Schaffgotsch: "Among the many attractive spots I have visited, this combines more delightful features of any place in the United Staters, Switzerland, or Austria for a winter sports resort." On December 21, 1936, the celebrated Sun Valley Resort was opened triggering growth that continues today.
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