The Denver Water Board set aside a 172-acre site for a new Town of Dillon. The Water Board had acquired a portion of the Fred Phillips Ranch at the northeast edge of what was to be Dillon Reservoir. Residents and businesses were responsible for the expense of moving their structures. Many chose not to, but the Dillon Community Church, Town Hall, and Arapaho Café and Motel were moved to the new town, and they still exist today. The original church building is now a museum operated by the local Historical Society with many Dillon artifacts of the late 1800s and early 1900s. Also, 327 graves were moved to a new 39-acre cemetery northeast of the new town site.