Saguache (suh-WATCH ) is a Statutory Town in and the county seat of Saguache County, Colorado, United States. The population was 493 at the U.S. Census 2010. History Saguache is a small historical village in an agricultural area in southern Colorado at the northern gateway to the San Luis Valley, a valley between the Sangre de Cristo Range on the east and the San Juan Mountains to the west. Saguache Creek flows through the town from its beginnings high in the San Juan mountains. The site has been known for centuries to Native Americans who moved down from their summer homes in the mountains to the valley during the winter months. The Spanish began to move into the area in the 1600s and Spanish sheepherders passed through each year as they drove their flocks into the hills for summer grazing. Later the early white settlers and miners passed through this area, many seeking passage west along the Old Spanish Trail. In the mid-1860s, the first permanent white settlements were established in Saguache and the nearby town of Villa Grove. Saguache County was officially founded in 1866. The formation of the town was influenced by the occupations and needs of the era. Beginning as a trading post, in the late 1800s mining became a significant influence as the Colorado mining boom brought hundreds of mining operations to the surrounding mountains and the miners needed a steady supply of food and other goods. The town was founded by Otto Mears, who came to Saguache in 1867. Mears constructed a wheat thresher and a grist mill for thrashing and grinding wheat to make flour to supply Saguache and the surrounding mines. He also built toll roads over the nearby mountain passes to use for hauling supplies to mining camps to the north, and to further open the area to settlement. The Saguache Town Company was formed in 1874 turning Saguache into a booming supply town. Mears also established a newspaper, the Saguache Chronicle, to attract pioneers to Saguache. Mears later helped build the Million Dollar Highway. Today From its early days as a boom town, the population of Saguache has shrunk to around 500 residents. The Saguache visitor guide writes that "In its heyday, Saguache could boast of having the Colorado Hall (serving the purest wines and liquors), the Saguache Meat Market, a boarding house, a grocery, law firms, a hardware store, a