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The Great Northern Railway was built through what is now Whitefish in 1904, which sparked development of the town. The area was originally known as Stumptown due to the abundant amount of timber that had to be cleared to build the town and railroad and because tree stumps were left in the streets throughout downtown. Early residents of the town worked for the railroad and nearby logging industries. By the late 1940s, with the successful construction of a ski resort on Big Mountain (a collaboration among local businessmen) the tourism sector was becoming increasingly important. The community was named for its location near Whitefish Lake.