Umatilla quickly became an important trade and distribution center not just for gold rush travelers but for the growing population of farmers and ranchers in the surrounding region. A business district developed along Water Street at the river's edge and at the town's peak it had 3 hotels, 22 saloons, 6 mercantiles and 3 grocery stores, among others. It won the county seat of Umatilla County by a small margin on March 6, 1865 But would only remain so until 1868 when it was moved to the burgeoning village of Pendleton. That same year the first newspaper (A tri-weekly) was established. For a brief time during the gold rush in the 1860s there was competition between Umatilla and Wallula, Washington to become the "Sacramento of the Upper Columbia" but the gold rush wouldn't last long enough to support either town's growth beyond frontier villages.