Most of Carlsbad's development was due to irrigation water. Local cattleman recognized the value of diverting water from the Pecos River to the grazing lands on Eddy's Halagueno Ranch. Many construction projects were undertaken to establish an irrigation system within the town. The Avalon Dam was constructed upstream of town, and canals diverted the water into town. Conflict arose when the canals met the river downstream; as a result, the Pecos River Flume was built, first out of wood and later concrete (the flume is often titled the only place where a river crosses itself).