In 1881 John Frazier settled on 160 acres, just south of the Buena Vista Lagoon and established a small settlement referred to as "Frazier's Station." He drilled a well looking for much needed water in 1883 and found water that he claimed to have cured of him illnesses relating to stomach and kidney problems.
The water was said to have been analyzed and it was claimed to have the same qualities of water found in Karlsbad, Bohemia. Gerhard Schutte and D.D. Wadsworth purchased the water rights, and together with other investors, formed the Carlsbad Land and Water Company and laid out a town site by the name of Carlsbad.
Mr. Schutte built a home that later became the Twin Inns, a long standing landmark, presently known as Neiman's Restaurant on present day Carlsbad Boulevard. By about 1888 a train depot and several stores were built and the small village prospered with a population of about 300.
Carlsbad suffered an indignity in 1907 when the name on its railroad station was shortened to Carl. With great protest, petitions were filed and the name was soon restored.
