The town was platted and lots sold quickly. A post office was established in 1890. A school was built in 1892 followed by the first resort hotel, taking advantage of the area's natural beauty. Following the Panic of 1893, hard times began in earnest but never affected Chelan completely. The first bank was established in 1893. Chelan was officially incorporated on May 7, 1902. In 1903, the city gained electric lights and water service via nearby Donaldson Springs. A permanent town hall was constructed in 1904 (but was destroyed by fire in 1927). The town continues to grow as an agricultural center and resort community which helps it thrive to this day.