Organizers chose a city form of municipal government in anticipation of developing the area as an industrial center. The Otter Creek Falls provided power for mills and factories, and the close access to the Lake Champlain waterway was ideal for transportation both north and south. Industry boomed in the late 19th century; in particular, shipping connected to the Champlain Canal and wood-finishing related to lumber imported from Canada. As railways supplanted and bypassed the canal system, manufacturing declined in the city. A railroad spur from Ferrisburgh to the base of the falls proved a failure, as the grades were too steep for practical operations.
