Town was laid out in 1868 as a lumber center. The land was owned by Mr. STanley and the property was laid out by his friend Gushee. Many businesses moved into town to take advantage of the many industry that started due to cheap timber, natural resources and water power. Trains would load their freight and proceed to the wharves in Santa Cruz down pacific Avenue from Felton on the narrow gauge railroad. Narrow gauge railroad also connected Santa Clara vally over the summit. A flume was installed to bring the word down the valley to load on trains. Eventually a track was extended by Southern Pacific up to Boulder Creek and lumber operation moved to this new center and Felton was less important to lumbering. Two devastating fires in the late 1800s burned much of Felton and the article states that Felton was never the same busy place again.