The settlement encompassed land originally belonging to Tséheya Begay. According to one of Shelton's early reports, Navajo had been irrigating the land for many years, with 275 farms drawing water from approximately 25 ditches between the Shiprock area and Farmington. Under Shelton, the agency expanded the irrigation system and developed a dairy herd as part of its agricultural progra; a sawmill near Sanostee and coal mine in the Hogback area were also developed. Early buildings in Shiprock were constructed of log and adobe, but brick replaced these materials after the disastrous flood of 1912. The superintendent was known as a disciplinarian who was ruthless in his prosecution of “moral lapses,” but is said to have been generally respected throughout the region, particularly for his efforts in adding the Utah-Colorado extension to the main Navajo Reservation.