Bayfield is a small ranching town in the heart of the Pine RiverValley, and sits downstream from Vallecito Lake on the banks of the Pine River. The early residents of the Pine River Valley were the Ute Indians. The valley was settled by non-Indians in the late 1800s and the first cattle were brought into the valley in 1875. The valley opened up as more ranchers discovered the fertile land. Bayfield was laid out by William A. Bay, for whom it was named, in 1898 and established in 1906. Bayfield has since served as a supply town and social center for farmers and ranchers and as a bedroom community for Durango 18 miles to the west. In recent years Bayfield has grown rapidly from 320 residents in 1970 to 1,600 in 1999.