Telluride is the county seat and most populous town of San Miguel County in the southwestern portion of the U.S. state of Colorado. The town is a former silver mining camp on the San Miguel River in the western San Juan Mountains. The first gold mining claim was made in the mountains above Telluride in 1875, and early settlement of what is now Telluride followed. The town was founded in 1878. Telluride sits in a box canyon.