History
Following the California Gold Rush of 1849, a miner named Jim Blue prospected for gold in the Canyon and established a small mining camp. In 1859, the Towle Brothers built and operated a lumber mill in Blue Canyon. In 1866, tracks from the first Transcontinental railroad reached Blue Canyon from Sacramento, followed by daily scheduled train service. The post office was established the following year. Railroad support services were established including a train station, hotel, worker housing, lunch counter, cookhouse, turntable, water and fueling facilities. By the 1870s, water from a natural spring in Blue Canyon was being shipped to hotels in Sacramento. A fire train was permanently assigned and kept under constant steam. In 1882, the population was 162. There were two hotels and a one-room school with 22 students in attendance. In 1907, Blue Canyon became a railroad crew change location resulting in a population increase as train crews were assigned there. During prohibition, Blue Canyon became a location for bootleggers, resulting in increased tourism. In 1926, double tracking of the railroad was completed, eliminating Blue Canyon as a crew change location. The population decreased significantly as workers were transferred. By 1936, the last active mine in the area had closed. In the 1950s, diesel locomotives replaced steam engines. In 1964, railroad support services were shut down as they were no longer needed. The population decreased to a near ghost town and the post office closed permanently. ==Climate==