Cottonwood Creek flows northwest from the Selkirk Mountains into the West Arm of Kootenay Lake, running along the western edge of Nelson. It was the location of the first hydroelectric power plant in BC in 1895-96 and influenced the early development of Nelson and its industrial roots.

The incorporation of Nelson Electric Light Co. in 1892 came with the goal of establishing electric lights for the city. To do this, the company diverted and used Cottonwood Creek, with the Cottonwood Creek plant below the falls becoming the first facility in BC to generate hydroelectric power using two 36-inch Pelton wheels, taking advantage of the change in elevation and the water power that produced.

Modified from: City of Nelson Heritage Register 2011