After congress approved the completion of the Alaska Railroad from Seward to Fairbanks in 1914, it was decided that a new town should be built as a port and rail hub along the route. The decision was made to develop a site near Ship Creek on Cook Inlet. Survey parties visited the area in 1914 and researched possible routes for the rails and options for siting the new town. Anchorage was originally settled as a tent city near the mouth of Ship Creek in 1915, and a planned townsite was platted alongside the bluff to the south. Anchorage was mostly a company town for the Alaska Railroad for its first several decades of existence.
The strategic location of Alaska, which led to a massive buildup of military facilities throughout Alaska during the years of World War II, changed that. Largely due to the military presence and resource development activities throughout Alaska, Anchorage has enjoyed significant boosts to its population and economic base from 1940 to the present.
The 1964 Alaska earthquake outright destroyed or caused significant damage to most of the Anchorage neighborhoods adjacent to Knik Arm, including its downtown. The community rapidly rebuilt, and has since emerged as a major American city.