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The community of Dotsero began as a result of prospector discoveries and bad weather. After a couple of prospectors found lead-silver in the form of carbonates high on the Flat Tops on Ute hunting grounds, a rush started for the new find in the spring of 1883. The snow was so deep beyond the Colorado that the stampeders set up camp to wait for the summer to melt the drifts. However, when the snow did melt, the Colorado River rose so high that it took out the bridge across it. Many prospectors lost heart, especially after reports that the ore assayed only four ounces of silver. A few people stayed on at the camp, and by 1888 Dotsero had a new bridge and a population of 50.
The origin of the name Dotsero remains in question. One explanation is that “Dotsero” means “something new” in the Ute language, and referred to the volcano just above town. Another story says the Denver and Rio Grande engineers manufactured the name. The called the mouth of the Eagle River “Dot Zero” to designate the beginning point of their survey. Others claim the name was that of an Indian girl.
Until recently, Dotsero never grew beyond its rudimentary start. The railroad bypassed it, taking the opposite bank of the Eagle on its way to Glenwood Springs in 1887. The surrounding country was too rough and arid for ranching, and the village subsisted mainly on business from travelers and the few ranchers in the area. Dotsero is seeing growth through a new development, Two Rivers Village, which boasts single-family homes and plans for 160 condominium units on the lake.
Dotsero is a popular starting point for bicyclists and river enthusiasts. An older mobile home park and a landscaping/nursery business are at the Dotsero interchange.
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