In 1866, a group of Mormon cavalrymen noted this valley while pursuing Indians during the Black Hawk War. In February 1875, a company of men came from Beaver, Utah and explored the valley. The first permanent settlers arrived from Beaver, Utah in November 1875. The townsite was surveyed, homes were built, and a bowery was erected. On July 4, 1876, in the absence of a better flag, they hoisted a striped Navajo blanket. The city was named for Father Escalante, a Spanish priest who visited Utah in 1776. It was organized as a Latter-Day Saint Ward on Aug. 5, 1877.