The timber and other resources of Cobourg's large hinterland were identified as the key to its prosperity, and if they could be brought to the harbour, Lake Ontario opened up a large and prosperous market. Peterborough to the north, founded in 1825 by Peter Robinson, had become the principal source area, and in the 1830s the waterways were still the prime method of bulk transport. Rice Lake and the Otonabee River were brought into use when James Gray Bethune established a steamer running across the lake and up the Otonabee which was navigable through to Peterborough. This meant goods and passengers could be brought at least to the south shore of Rice Lake. The remaining 8 miles of rough tracks was viable for passengers and light goods, but no use for the valuable timber and mine products. By 1835, only 10 years after the first steam railway in the world, there was active discussion about building a railway up to what later became Harwood. However, the townspeople invested instead in a plank road, using 300,000 feet of 3-inch wooden planks, allowing horse-drawn vehicles to haul heavy goods. By 1850 the plank road was breaking up, and was impassible in wet conditions, so the railway scheme was revived.