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Local Native Americans called the hot springs here the "place of magic water" and often came here to find relief from illness. The first homesteader, William H. Cadwell, set up a bathhouse in the area, and travelers came from near and far to soak in the springs. Fennimore Chatterton, post trader at Fort Steele, hoped to turn this into a resort town, and thus named it for the renowned Saratoga Hot Springs in New York State. The town was established in 1878, but did not prosper until the railroad came in 1907. The copper boom also created growth, until the mines ran out. Today, Saratoga is largely an agricultural community, and also mills lumber from the nearby mountains. With the only "blue ribbon" trout stream in this part of the state, Saratoga is gaining increasing attention as a major tourist center.
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