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In 1876, the territory of Colorado became a state. Less than a year later, Governor John Routt signed a bill creating Routt County. In 1883, the northwest area of Colorado was beginning to experience its foundation of community spirit. William H. Tucker was the founder of Craig, which became the seat for Moffat county. He first came to the area in the spring of 1889 looking for a town site. After his inspection of the Craig area, he knew that money could be made in the valley especially with such enticing prospects as a new railroad to be included in the deal. But financing was needed so he contacted the Reverend William Bayard Craig for the necessary financial help. Craig, hearing about the town site project in turn called Frank Russel and Jerry Hill. All three were enthusiastic about the project.

Together with Mr. Tucker, they organized the Craig Land and Mercantile Company and decided on the name of "Craig" after their chief financier. By November, 1907, the idea of incorporating the town of Craig was taking shape. A citizens meeting was called to consider the proposal. By Tuesday, April 21, 1908, and after much discussion pro and con, the town became incorporated.

In 1911, Senator Cary introduced the Senate Bill #34 providing for the creation of Moffat County, which was carved out of Routt county. The Bill passed and was approved by Governor John F. Shafroth on February 27, 1911.