The settling of Lake Tahoe came in three stages: transportation, logging, and recreation.
Transportation was first, because of the immigration to California during the years of the Gold Rush. However, while the immigration routes around the lake were lower in elevation and shorter in distance, they were more difficult because they required two mountain crossings.
Wagon trains coming west by way of these routes had to cross the Carson Range on the east side of the lake, then scale the Sierra on the west side.
When immigration into California largely ceased as gold fever gave way to the Nevada silver boom, the immigration became emigration and roads from California to Nevada’s Comstock took on greater importance. Of the several roads constructed during these early years, it was the Placerville Toll Road — often called the Bonanza Road.
The Bonanza Road was not a single road, but a system of toll roads that formed a turnpike between Placerville, Genoa, Carson City, and other Comstock settlements. The road was the primary route from California to the Comstock, and was the predecessor to the three main highways in Lake Tahoe: U.S Highway 50, California Highway 89, and Nevada Highway 19.
During the 1860s ranching, dairy-farming and logging increased in the area. The Bonanza Road and the several other routes provided the way for goods to get to and from the mines.
Soon inns that had served teamsters and miners began to accommodate seasonal visitors. This was the beginning of the resort industry in Lake Tahoe.
Among the first to use the area for escape from the summer heat and the bustle of urban life were miners from Virginia City, Gold Hill, and Silver City. In 1864 the Bailey Hotel was built in Tahoe City.
The Grand Central followed shortly afterwards. The hotels were also patronized by men from the Nevada lumber camps who returned with glowing tales of the fishing and hunting at the lake.
Lumber operations around the lake primarily supplied lumber for the Comstock and its mines. The Glenbrook logging operation, owned by the Bliss family, was the largest and most famous.
When the lumber business declined for the Bliss operation, one of the sons leveled a mill site and built a modern hotel, turning the Glenbrook Inn into a popular lakeside resort. By 1871 vacationers to Tahoe could take the train from the Bay Area to Truckee and arrive by stage at the Grand Central Hotel in Tahoe City.
In 1872 the steamer Governor Stanford met the travelers at the wharf in Tahoe City to transport them to other points on the lake. During the 1870s and 1880s, the steamer also provided recreation.
Tourists could take all-day sightseeing trips around the lake, entertained by the ship’s orchestra for dinner and dancing.
As the boom on the Comstock came to a close around 1888, the resort industry was becoming increasingly important. The Southern Pacific Railroad, formerly the Central Pacific, brought tourists to Truckee and then by stagecoach to Tahoe City, where they could travel by steamer to other lakeside sites.
During the 1880s, over-water railroad spur tracks and sawmills could be found along the lake’s shore. By the 1890s these gave way to an array of hotels and casinos.
Summer-home developments which had been fashionable since the 1880s, now bloomed into full-fledged summer-home communities. Winter vacationing at the lake began in 1908.
Horse-drawn sleighs provided transportation from the railroad town of Truckee to the Tahoe Tavern, which was also built by the Bliss family, just south of Tahoe City, while the steamer Tahoe made the cross-lake connection to the south shore. The Tahoe Tavern was by then the busiest resort at the lake, catering to the wealthy of San Francisco.
The first 20th-century railroads in the Tahoe-Truckee area was the narrow gauge Lake Tahoe Railway and Transportation Company. The miniature line ran between Truckee and Tahoe City.
The railroad was also constructed by the Bliss family. They used material from various lumber railroads in the area, abandoned because of depletion of timber.
The new line, which opened May 1, 1900, was a tourist railroad from the outset, although it also hauled some freight. It operated only during the tourist season, from May 15th to November 15th and ran four scheduled round trips daily through 1915, but by 1920 it was cut to three.
In 1925 the LTR&TCo leased the railroad to Southern Pacific. SP advertised the line nationwide, announcing that the old “American Canyon Route” was now the “Lake Tahoe Route” and would be converted to standard gauge.
The track conversion was completed May 1,1926. A balloon loop at the Tahoe Tavern allowed for the trains to be turned.
During the summer, a tourist could ride an overnight Pullman from the Oakland Pier to Tahoe City. By 1926 winter vacations at Lake Tahoe had gained so much popularity that SP introduced the “Snow Ball” specials from San Francisco.
West of the Tahoe Tavern, where the Granlibakken ski area is now located, a ski jump and toboggan hill opened up new opportunities for winter sports. This line of the SP operated until November 10, 1943, put out of business by the automobile and World War II.
Passenger business on the LTR&TCo increased until better highways let tourists drive to the lake. Before 1913, when the roads became state highways, it had not been possible to drive through on the west side.
Once at the lake, 53 miles of highway went from the Nevada state line near Brockway, around the lake north-west and south. In 1927, 14 miles of highway between Truckee and Tahoe City, and 12 miles between Tahoe City and the state line at Brockway were improved, as was the 11 mile stretch between Tahoe City and Meeks Bay.
Tourists drove to the lake tended to stay for shorter periods and were generally looking a wilderness experience. This led to the creation of Camp Richardson, which offered small rustic cabins to tourists for weekend stays.
The improved roads and growing familiarity with the area played a large role in inspiring vacationers to build their own summer cabins at the lake.