Nestled in the alluvial foothills of the Sangre de Cristo Mountains and beneath five fourteen thousand foot peaks, Crestone was platted and officially became a town on November 4, 1880. However, the history of this area stretches back into Neolithic times, when indigenous peoples hunted the mammoth bison. Native Americans, including the Commanche, Kiowa, Ute, and Pueblo hunted and camped here. The first Europeans who explored and traded in the San Luis Valley were the Spanish in the 16th century. The Baca Ranch is legacy of the Spanish influence. The Baca is part of the most northern of all the Spanish Land Grants and was serviced by the Old Spanish Trail.

Connecting the communities of New Mexico and Los Angeles, the Old Spanish Trail created a corridor of trade through six states. Raw wool was packed on mules and transported to the Spanish settlements in southern California. It took two and a half months to negotiate the entire overland journey. To commemorate this trade route, the U.S. Congress established the Old Spanish Historic Trail in 2002, the 15th such trail to be designated in America.

In the 1870s, gold was discovered in the Burnt Gulch area, directly above the town site. Alexander H. Major arrived in Crestone in 1879 and opened a general store. Businesses, including five general stores, two livery stables, two feed stores, a slaughterhouse, restaurants, saloons, doctors’ offices, a bakery, boarding houses, a bank, and bookstores came and went during those volatile times. Due to mining, Crestone was on a railroad spur to Moffat, thus making travel to and from this picturesque little town easy. The larger Crestone District included mining camps and more temporary towns, like Liberty and Cottonwood. The ore eventually played out, however, and Crestone entered a slow decline and almost became a ghost town. Families survived working on the Baca Ranch, but life was hard.

Historically, many peoples have crossed this valley to get to Crestone, seeking dreams of wealth, sanctuary, and peace. Today, the community is enjoying a revival as the entire area has shot up new growth and enjoys mild prosperity. The downtown area is once again host to shops, stores and restaurants, fulfilling the needs of the town, the Baca Grande Subdivision and all its many visitors. Crestone still continues its tradition of the “wild west,” bringing folks together from all over to scratch out a living in this spectacular place. Several of the world’s contemplative traditions have found a safe haven here at the eastern edge of Saguache County. Travelers can view or visit the several Buddhist retreats, a Hindu Ashram, a Carmelite monastery, three Tibetan stupas and a number of healing centers. Backpackers, climbers and outdoor enthusiasts of all sorts come here every year to melt into the grandeur of the Sangre de Cristos. Yearly highlights in Crestone are the Fourth of July celebration and parade, the Crestone Music Festival and Winterfest.