The D&RG had built a narrow-gauge route from Denver in 1870, making its way to the Animas Valley from the town of Alamosa (Known as the San Juan Extension) and establishing the city of Durango in 1881, and then built to the town of Silverton in 1882. The D&RG would later build a route from Salida to Montrose, and then south to where they established the town of Ridgway (named after D&RG superintendent Robert M. Ridgway) and reached the mining town of Ouray in 1887. The D&RG had surveyed possible routes to access the town of Rico and connect the Ouray branch, one that branched off of the Silverton Branch at Hermosa and another route that Otto Mears' Silverton Railroad would eventually be constructed on, but as far as the D&RG was concerned, both routes were deemed as too formidable for a railroad line to be constructed. Otto Mears decided to take on the task of connecting the D&RG's rail lines separated North and South of the central San Juans, and he had been on good terms with the D&RG from building the roadbed for their route to Gunnison, over Poncha and Marshall Pass.