Chelan had its beginning as a military post established in 1880 by Colonel John Merriam. Civilian settlers started arriving in 1886 and the town was incorporated in 1902. Mining was the first major interest in the Chelan Valley with hundreds of claims filed and worked between 1890 and 1917. Columbia River steamers furnished the first passenger, mail, and freight service to Chelan. A branch of the great Northern Railway reached Chelan Station in 1914. Chelan was the name of a small Salish Indian tribe who camped at the present town site during the winter. Salish is difficult to translate, and Chelan has been translated as both "Lake" and "blue water".