Libby, Montana - Scenic View of Kootenai River

Libby, Montana

The Right Kind of Remote

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Local Industry & Economy

Libby's economic story is deeply intertwined with its natural resources and rugged landscape. For generations, the timber industry formed the backbone of the local economy, with the J. Neils Lumber Company (later purchased by St. Regis) operating one of Montana's largest lumber mills from 1910 through the 1960s, employing over 1,500 people at its peak. Alongside logging, vermiculite mining became a significant economic driver when E.N. Alley established the Zonolite Company in 1919, which eventually supplied 80% of the world's vermiculite under W.R. Grace and Company's ownership until its closure in 1990.

The construction of Libby Dam in the early 1970s brought another economic boom, employing over 2,000 workers at the height of construction. Following the dam's completion in 1975 and the subsequent closure of mining operations in 1990, Libby faced significant economic challenges. However, the community has shown remarkable resilience, gradually transitioning toward a more diversified economy. Today, while government services, healthcare, and education provide stable employment, Libby is increasingly embracing its natural assets to develop a tourism and recreation-based economy. The town's spectacular surroundings, world-class fishing, hiking, and winter sports opportunities are drawing visitors and new residents alike, breathing fresh life into this historic Montana community.

History & Heritage

Libby's story begins with the Kootenai Tribe, who for centuries used the Kootenai River as a travel corridor between Idaho and British Columbia. While no tribe made a permanent settlement in the area, the Kootenai people frequently hunted, fished, and conducted spiritual ceremonies at Kootenai Falls, which remains a sacred site to this day. The early 19th century brought British-Canadian explorer David Thompson to the region, followed by fur trappers and traders who were drawn to the abundant wildlife along the river and its tributaries.

The first major influx of settlers arrived in 1866 when 500 prospectors flocked to Libby Creek in search of gold. Though most left within a year as deposits proved shallow, a few hardy souls remained to establish homesteads. The arrival of the Great Northern Railway in 1892 transformed the fledgling settlement, shortening its name from Libbysville to Libby and connecting it to the wider world. The early 1900s saw the establishment of the first large-scale lumber mill, marking the beginning of Libby's identity as a timber town.

The mid-20th century brought dramatic changes with the construction of Libby Dam between 1966 and 1975, creating the 90-mile-long Lake Koocanusa and forever altering the landscape. While the dam project temporarily boosted the economy, the subsequent decades brought challenges, including the closure of the vermiculite mine in 1990 and later the timber mill. Despite these setbacks, Libby has preserved its rich heritage through institutions like the Heritage Museum, which showcases exhibits on Native Americans, lumbermen, trappers, and early pioneers, keeping the area's colorful past alive for future generations.

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Getting There & Nearby Destinations

Libby is located on U.S. Highway 2 in northwest Montana, approximately 35 miles from the Idaho border. The nearest major airports are in Kalispell, Montana (90 miles southeast) and Spokane, Washington (160 miles southwest). Visitors can reach Libby by car via US-2, which runs east-west through town, or Montana Highway 37, which connects from the north. The scenic drive to Libby takes travelers through some of Montana's most spectacular landscapes, including the Kootenai National Forest.

Nearby destinations worth exploring include Troy (18 miles west), a charming small town also situated on the Kootenai River; Eureka (65 miles northeast) at the northern end of Lake Koocanusa; and Kalispell (90 miles southeast), which serves as the gateway to Glacier National Park. The Canadian border is approximately 70 miles north, making day trips to British Columbia possible for international travelers.

Best Libby Hotels & Lodging Guide (2025)