History of Eureka Springs, Arkansas
The Eureka Springs area had a reputation as a tourist destination well before the first pioneers reached Arkansas. Several Native American legends tell of a Great Healing Spring in the Eureka Springs area.
This reputation continued as Europeans arrived on the scene and the waters of the springs gained a reputation of having magical powers. Within a short time Eureka Springs was transformed into a flourishing city, spa, and tourist destination.
Dr. Alvah Jackson first located the spring and claimed that the waters of Basin Spring had cured his eye ailments in 1856. Dr. Jackson established a hospital in a local cave during the American Civil War and used the waters from Basin Spring to treat his patients. After the war Jackson marketed the spring waters as "Dr. Jackson's Eye Water". The Ozarka Water Company was later formed in Eureka Springs.
In 1879 Judge J.B. Saunders, a friend of Jackson, claimed that his crippling disease was cured by the spring waters. Saunders started promoting Eureka Springs to friends and family members across the State and created a boomtown. Within a period of one year the city had transformed itself from a rural spa village to a major city of 10,000 people.
On 14 February 1880 Eureka Springs was incorporated as a city. Thousands of visitors came to the springs based on Saunders promotion and covered the area with tents and shanties. Late in 1881 the town reached a population of 10,000. In 1881 Eureka Springs enjoyed the status of Arkansas's fourth largest city.
After his term as a reconstruction Governor, Powell Clayton moved to heavily unionist Eureka Springs and began promoting the city and its commercial interests. Clayton promoted the town as a retirement community for the wealthy and Eureka Springs soon became known for gracious living and a wealthy lifestyle.
In 1882 the Eureka Springs Improvement Company was formed to attract a railroad to the city. Eureka Springs soon established itself as one of the premier vacation resorts of the Victorian era. The town experienced a construction boom and thousands of homes and commercial enterprises were constructed in only two years. These Victorian buildings still exist and are responsible for the entire town of Eureka Springs being placed on the National Register of Historic Places.
In 1886 the magnificent Crescent Hotel was constructed at the top of the mountain and attracted a wealthy clientele. The restored hotel is one of Arkansas's premier luxury hotels and is a member of the "Historic Hotels of America" organization. Its recent popularity is due to claims that it is haunted, having been on the television show Ghosthunters and offering ghost tours of the hotel and grounds.
At the turn of the 20th century the fortunes of Eureka Springs began to decline. The national focus on science and technology lessened the attractiveness of Eureka Springs and its "magical waters". The Great Depression hit the town hard with many buildings deteriorating or being torn down for materials.
As the century progressed the town gained popularity as a retreat for artists, writers, and intellectuals who were seeking a simple and less expensive nostalgic lifestyle. Eureka Springs maintains its reputation as a safe haven for artists and other creative people.

Christ of the Ozarks
In 1964 controversial Minister Gerald L. K. Smith began construction of a planned religious theme park at Eureka Springs. The park was never fully developed as originally planned.
In 1966 the centerpiece of Smith's plan, the Christ of the Ozarks Statue, was completed overlooking the town on Magnetic Mountain at an elevation of 1500 feet. The sculptor, Emmet Sullivan was one of the sculptors of Mount Rushmore.
Smith also planned for a life-size recreation of ancient Jerusalem in the hills near Eureka Springs and did create the east gate of the recreated city. The Elna M. Smith Foundation still resides on the site and maintains a Bible Museum and continues to slowly work on the Jerusalem recreation.
The Smith foundation also conducts the famous Great Passion Play each night during the summer months. Hundreds of actors portray the story of Christ's crucifixion in an outdoor amphitheater. The play is conducted on the side of a hill where an impressive permanent set has been constructed complete with Golgotha and magnificent recreations of Jerusalem's streets.
Since 1976 country music and entertainment theaters including Pine Mountain Jamboree and Ozark Mountain Hoe-Down have entertained tourists and locals alike.
In recent years the popularity of Branson, Missouri, has both increased the number of tourists arriving in Eureka Springs but has also impeded on the town's old world charm. The influx of guests has also led to increased commercial activity.
Several franchised hotels provide accommodations. The town also has a large number of Victorian homes converted to Bed and Breakfasts, providing more personalized service and local flavor. Additionally, the Little Portion Hermitage, a ministry of the Catholic-based Brothers & Sisters of Charity, provides contemplative as well as inexpensive lodging.