Zephyr Cove was named after the Washoe Zephyr, the fierce westerly wind that occasionally torments the region. Anglo-Americans settled the area in 1862 about the time the Bigler Toll Road was constructed over Spooner Summit and down to Carson City. Like Glenbrook, Zephyr Cove and Marla Bay to the south were heavily logged during the late nineteenth century. Entrepreneurs built a few hotels during this time, but more extensive development did not occur until the 1920s. Since then, a popular resort and an exclusive subdivision have grown up along the shores of Lake Tahoe.
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