Before reservoir construction began in 1947, this valley included beautiful dairy land with cropland on the flats, pastures on the slopes, and steep forested mountainsides. In addition to Shavertown, the hamlets of Union Grove, Arena, and Pepacton served as centers for farming and logging. Arena was originally known as Lumberville when it was settled in 1784, and the acid factories in Shavertown produced wood alcohol and other chemicals from the forest resources of the surrounding hills. The rich soil of the river flats supported successful dairy farming, a mainstay of the valley, including parts of the towns of Middletown, Andes, and Colchester, until the reservoir went into service in 1955.