Settled by the Anson Rudd family in 1860, Cañon City quickly became a regional center of commerce. The Arkansas River and its numerous tributaries provided ample water for agricultural, residential, and industrial uses.

Farms, ranches, and orchards flourished in the fertile soils along the river. Silver and gold discoveries in the surrounding mountains provided a ready market for Cañon City farmers and merchants.

Wagon roads and railroads proved critical to Cañon City's success. Wagon and stagecoach roads stretched south to the silver mines near Westcliffe and Silver Cliff, and northwest to the silver and gold mines in Alma, Fairplay, and Leadville.

In the late 1870s, the Atchison, Topeka, and Santa Fe Railroad (AT&SF) and the Denver and Rio Grande Railroad (D&RG) arrived in Cañon City. The D&RG built on to Leadville in 1880 after the settlement of the bitter "Railroad War" with the AT&SF. This enhanced the brisk trade already enjoyed between Cañon City and Leadville.

With the gold discoveries in Cripple Creek in 1890, a group of Cañon City businessmen quickly financed and built the Shelf Road in 1892. Originally called the Cañon City and Cripple Creek Toll Road, this route transformed an untraveled wilderness into a major thoroughfare for stagecoaches and freight wagons traveling between the Arkansas Valley and the Cripple Creek Gold Mining District.

In 1894, the Florence and Cripple Creek (F&CC) Railroad proved a more efficient connection to the mining district than the wagon road. Cañon City still managed to get a piece of the action by convincing the managers of the F&CC to build a branch line to Cañon City and share the facilities with the D&RG in 1899.

Today, Cañon City continues to serve as a gateway to the Gold Belt Byway and remains the commercial hub of Fremont County. The city's strategic location along the Arkansas River and its historic connections to the mining districts have shaped its identity as a community where small-town charm meets outdoor adventure.