Village of Cloudcroft—the word “Cloudcroft” means pasture in the clouds. In the late 1800s the logging, ranching and farming potential of the area was recognized and people began to settle permanently in the area. A railroad was completed between Alamogordo, New Mexico and El Paso, Texas in the 1890s. Investors saw both the beauty and economic assets of the Cloudcroft area and how it could benefit their project.
The railroad founders the Eddy brothers assisted by their attorney William Ashton Hawkins realized the need for timber and railroad ties as their railroad proceeded north to White Oaks. In 1898 a survey crew that had been sent to the area to determine the feasibility of laying a railroad line up to the summit of the Sacramento Mountains above Alamogordo, reported that it was not only feasible but that the region’s beauty would attract visitors from a wide territory. The railroad purchased 2,700 acres on land at the summit and established a new village. By June, 1899, a plat was proposed and filed for “Place of Cloudcroft”.
Construction at the summit on a structure called the Pavilion at the summit, which would provide accommodations for the anticipated tourist. Glowing reports of the new resort at Cloudcroft were published in area newspapers and people flocked to the mountains. The Pavilion burned twice in the 1920s and each time was rebuilt to the original plans.
The railroad also built a grand lodge for its workers, which was also used as a summer resort for El Pasoans. The village grew around the Lodge. The Lodge burned in 1919 but was rebuilt and is still open, complete with the ghost of Rebecca.
The Cloudcroft Property Owners Association, known as the Directory, was formed in 1903. John Arthur Eddy drew up the by-laws and served as the first secretary of the organization. Until Cloudcroft was incorporated in 1948, the Directory was the governing body of the community.