The groundbreaking and official naming ceremony of Shasta Dam occurred on September 12, 1937 in the small town of Kennett shortly upstream of the dam. Congress initially approved $12 million for the project.de Roos, pp. 40–41 Within five years Kennett would be submerged under the rising waters of Shasta Lake. The dam was initially known as Kennett Dam, but was eventually named after nearby Mount Shasta. After surveying several nearby sites, the Bureau of Reclamation chose to build the dam in a deep canyon about a mile above the abandoned smelter town of Coram and two-and-a-half miles below Kennett. The dam was planned to be over high. The winning bid of $35,939,450 for construction came from Pacific Constructors Inc., a conglomerate of twelve smaller companies.
