Paonia State Park occupies 1,857 acres in a canyon east of Paonia, surrounding Paonia Reservoir on Muddy Creek. Established in 1964, it brings together open water, steep canyon terrain, and upland forest, with visible Cretaceous and Paleocene formations and plant fossils including palm fronds and leaf imprints. Higher slopes support Gambel oak shrublands, mixed conifer, and aspen forest, and wildlife commonly includes mule deer, elk, cottontail rabbits, and marmots. At the park’s center, Paonia Dam, completed in 1962 by the Bureau of Reclamation, stores water reserved for the Fire Mountain Canal, serving agriculture in the North Fork Valley.