In 1925 a mining engineer dreamed of developing a Black Hills Country Club. Along with other investors, he purchased land along Palmer Creek, at the base of Harney Peak, five miles west of Mt. Rushmore (Mt. Rushmore had yet to be carved). They developed four private summer cabins and five rental cabins. By the Depression of 1929, the members of the club could no longer contribute much to support the enterprise and it was sold.

The new owner operated the club, where golf, horse riding, picnicking and touring the hills were the staple activities until 1962. In 1962 the country club was once again sold and the new owners transformed the club into a dude ranch called Palmer Gulch Lodge. The golf course was allowed to revert back to natural meadows and valleys, but horse riding, socializing with other guests and of course touring the Black Hills remained the activities of the day.

In 1972 the property was sold to the present day owners with the intent of developing a campground. By 1973 the campground opened its doors as a franchisee of Holiday Inn (Holiday Inn Travel Park). In 1976 the campground was successful in transferring the franchise to KOA, hence the present day name, Mt. Rushmore KOA and The Lodge at Palmer Gulch. Since that time, a mining engineer’s dream of 1925 has become much more than a country club. Today Mt. Rushmore KOA and Palmer Gulch Lodge boasts the most complete resort facilities in the Black Hills area with nearly 500 camping sites, 55 Kamping Kabins, 62 Lodge Rooms, 20 full service cabins, 10 Row Cabin/Duplex Rooms, 6 Executive Lodges, 3 meeting facilities, Restaurant & Lounge, 2 sets of swimming pools, waterslide, mini-golf, tours, horse rides, numerous shopping opportunities and much more.