Cortez, Colorado, established in 1886, sits between the mountains and desert in Montezuma County. J.W. Hanna owned the land and was the president of the Montezuma Valley Water Supply Company. The town hosted hundreds of men who worked to create a complex irrigation system that diverted water from the Dolores River to the Montezuma Valley. Today, a reliable source of water remains an issue for the town.

Cortez is a rich source of agriculture, yet the lack of a railroad spur affected the town financially. Due to the lack of transportation, surrounding communities remained close since walking, stage, and freight lines were the only modes of transportation.

The town experienced cycles of booms and busts throughout its history. The first decade of the twentieth century saw prosperity in Cortez. In the 1910s, inclement weather, World War I, and flu epidemics brought hardship to the town. The Dust Bowl brought new people from Kansas, Missouri, Oklahoma, and West Texas to the town. The change in demographic created an economic upswing to the area in the 1930s.

The discovery of gas in McElmo Canyon caused the town to expand once more. In the 1950s, speculators searched for yellowcake uranium in the mesas and canyons. The discovery of oil changed the community and chain stores threatened local stores as the town continued to expand. During this boom, the town paved Main Street in the 1950s. Cortez experienced another decline, but its economy stabilized in the 1960s and 1970s when the McPhee Dam controlled the flow of the Dolores River, and the reservoir facilitated agriculture and recreational activities. There were also carbon dioxide and coal speculators.

By 1980, the town survived off of tourism, Government, and agriculture. The town is located in southwestern Colorado and exemplifies American Southwest tourism. In 1906 the National Park Service deemed Mesa Verde a National Park after people discovered the ruins created by Native peoples. Cortez is an ideal tourist destination due to its proximity to popular sites, such as the Mesa Verde National Park.