This town is at an elevation of 7,680 feet (2341 m). It was originally a summer campground for Indians who came for the hot springs. When Grand County was formed, it was the first county seat from 1874 to 1882, after which it moved to Grand Lake. The county seat returned in 1888 and has been here ever since. This town was established in 1860 making it the oldest town in the county and originally named Saratoga West and sometimes called Warm Springs. In 1863 the name was changed to reflect the hot springs in the area that were used for medicinal purposes. The town site was bought by William Newton Byers, founder of the Rocky Mountain News, in 1864. He wished to make it a spa and resort so surveyed, platted and named the streets to the city. It was incorporated April 1, 1903. William Byers original family cabin is located at 204 Byers Avenue, along what is now Highway 40 and still exists to this day. The building is currently the county's only mortuary.
There were 196 households out of which 32.1% had children under the age of 18 living with them, 57.7% were married couples living together, 5.1% had a female householder with no husband present, and 32.7% were non-families. 25.5% of all households were made up of individuals and 7.1% had someone living alone who was 65 years of age or older. The average household size was 2.45 and the average family size was 2.98.
In the town the population was spread out with 24.4% under the age of 18, 9.0% from 18 to 24, 34.7% from 25 to 44, 25.7% from 45 to 64, and 6.1% who were 65 years of age or older. The median age was 36 years. For every 100 females there were 122.6 males. For every 100 females age 18 and over, there were 134.5 males.
The median income for a household in the town was $39,306, and the median income for a family was $46,000. Males had a median income of $42,431 versus $20,208 for females. The per capita income for the town was $24,012. About 2.3% of families and 5.7% of the population were below the poverty line, including 4.0% of those under age 18 and 9.1% of those age 65 or over.