History of Port Townsend

Port Townsend is also called the "City of Dreams" because of the early speculation that the city would be the largest harbor on the west coast of the United States.

By the late 19th century, Port Townsend was a well-known seaport, very active and banking on the future. Many homes and buildings were built during that time, with most of the architecture ornate Victorian. During this period, in 1888, the Port Townsend Police Department was established.

Railroads were built to reach more areas in the 1870-1890s and Port Townsend was to be the northwest extension of the rail lines. Its port was large and frequented by overseas vessels, so shipping of goods and timber from the area was a major part of the economy. Many of the buildings were built on the speculation that Port Townsend would become a booming shipping port and major city. When the depression hit, those plans lost the capital to continue and rail lines ended on the east side of Puget Sound, mainly in Tumwater, Tacoma, and Seattle. With the other Puget Sound ports growing in size, Port Townsend saw a rapid decline in population when the Northern Pacific Railroad failed to connect the city to the eastern Puget Sound city of Tacoma. By the late 1890s, the boom was over. Without the railroad to spur economic growth, the town shrank and investors looked elsewhere to make a good return. (The Milwaukee Road built a short spur to the pulpmill and barged cars over from Anacortes.)

Over the decades that followed, Port Townsend maintained its economic stability in a variety of ways, including the development of artillery fortifications at Fort Worden. Many people left the area and many buildings were abandoned. Port Townsend's economy was very weak until the 1920s when a paper mill was built on the edge of the town. The bay is now home to Naval Magazine Indian Island, the US Navy's primary munitions handling dock on the