A standard gauge railroad extends from New Castle and opens new markets for Palisade’s coal and fruit business outside the Grand Valley. The Rio Grande Junction Railway was a joint venture between the Colorado Midland and the Denver & Rio Grande Railways which jointly operate the railway from Rifle to Grand Junction. Mary Currie files a patent for 133 acres of land at the center of Palisade in 1891, but probably occupied it earlier. Currie sold lots to Frank M. Burger in October 1891 who then sold them to Grand Junction banker and developer Benton Canon six months later for more than twice the $1,500 he paid for the two lots. Canon filed the original plat for the town between First and Fifth streets, and Main Street and Peach Avenue. In 1889, Currie sold a strip of land for a total of 6.3 acres to the Denver and Rio Grande and the Colorado Midland Railroad for the railway right of way. W.A. Pease is considered the first settler in what was called Palisades.
Canon also plats the Palisade Fruit Tracts which have 12 lots varying from one to 13 acres covering the area from First to Eighth streets and from Peach Avenue west to Elberta Avenue. The area from Fifth to Eight and from Main St. to Peach Ave. are known as Fruit Tracts.
The first one-room school opens in 1893 on Second St.