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Most People Have No Idea There’s An Underwater Ghost Town Hiding In Wyoming

The story of Kane starts out just like any other town in Wyoming. The town, named after Riley Kane who was a local cowboy, was established in 1912 and is located 12 miles east of Lovell, just south of the Shoshone River and west of the Big Horn River. It was located along the Chicago, Quincy and Burlington Railroad and was primarily a railroad shipping venue for sheep, cattle and lumber. The town consisted of log houses, a post office, two hotels, a motel, dance & pool hall, boarding house, a school house, bank, two general stores, railroad depot and the Kane Ferry. At the time, the ferry was the only access for crossing over the Bighorn River, north of Greybull. The ferry was used to move sheep over to the Bighorn Mountains and was a trading center for farmers and ranchers. The ferry was eventually replaced by a bridge.

Check out this video by YouTube user zeekzilch. This is where the town of Kane was before it became submerged under water.

The town thrived just like any other town in Wyoming until 1965 when the Yellowtail Dam was built. The Bureau of Reclamation bought the land from the community knowing that the dam would cause Bighorn Lake to reach its full capacity and flood Kane. In 1967, the town had completely become a ghost town and the rising lake waters took care of the rest.

Here’s a video by YouTube user Yaroooh! for Kids | News – Magazine that shows the construction of the Yellowtail Dam.

Today, all that’s left is a railroad marker, old bridge abutments, a cemetery and a ghost. The cemetery was far enough north that it did not become submerged and is still located in its original location within the Bighorn Canyon National Recreation Area. There may, however, be one resident that was left behind. Supposedly, there is a ghost that lingers in the cemetery who is known as “The Blue Lady.” It’s thought that her children drowned and that she stayed behind to continue looking for them.

To read about another ghost town in Wyoming, check out This Creepy Ghost Town In Wyoming Is The Stuff Nightmares Are Made Of.

Caryl
I am a freelance writer who also has been a small business owner and worked in the fields of insurance, accounting, and education. I enjoy spending time with family, reading, writing, photography, music, running, sports, and of course traveling!