La Plata County has three major communities, the city of Durango (the county seat), and the towns of Bayfield and Ignacio. Historically, La Plata County developed as a result of "traditional west" commodities such as minerals, cattle and timber. Since the 1970s La Plata County has been in transition from a traditional rural county to a more urban environment in which tourism is the number one industry. People moving in for quality of life issues or "amenity migration" drove population growth in the 1990s. The natural environment, and the amenities it provides, are behind much of the growth and have become the larger region's chief economic asset.

The county is comprised of 1,083,085 acres (1,692 sq. miles). Of these, 43% are private lands, 16% are tribal lands (Southern Ute and Ute Mountain Ute), and 41% are state and federal lands. The foremost issue that currently faces the county is population growth. Implications of growth include increased demand for services; infrastructure needed to serve development; changes to the environment; and impacts on the overall quality of life in the county. Planners (county, city, and tribal) currently are attempting to address such issues as growth management, affordable housing, open lands and agricultural protection, visual resources, parks and recreation, utilities, emergency services, airport planning and district land use plans. They are in the process of developing strategies to cope with these issues within the framework of a Comprehensive Plan.

Several barriers to economic development exist within La Plata County. These include geographic isolation, lagging telecommunications infrastructure, and limited higher educational opportunities.

Development
Between 1990 to 1999 the county saw a 31% population increase as well as growth in the Construction, Trade and Finance, Insurance & Real Estate employment sectors. These sectors support newcomers who are buying land, building new homes, and taking advantage of the quality of life and natural beauty found in SW Colorado, also known as "amenity migration."

Although there is a relatively low unemployment rate (3.8% in 1999), wages and employment are highly dependent on generally low paying retail and service sector jobs driven primarily by the tourist and resort industry. The service sector provides 35% of jobs and 33% of employment income. The Trade sector accounts for 24% of jobs but provides the lowest average wage of all sectors. Construction is also an important sector, providing 12% of employment and 14% of employment income in 1999.

Operation Healthy Communities (OHC) has determined that in 2000 a minimum of $9.67/hr provided a livable wage in Durango, $9.32/hr in Bayfield and $9.32/hr in Ignacio if you were a single person renting a one-bedroom apartment. The median family income for La Plata County was estimated at $50,994 (Source: Housing and Urban Development).

In 2000, Total Personal Income (TPI) in La Plata County was $1,209,549,000 (estimated) Per Capita Personal Income (PCPI) is estimated at $27,527. The largest proportion (65%) of TPI is generated through employment earnings. Retired persons collect benefits that account for 12% ($148,351,000) of TPI in La Plata County. Retirees make significant contributions to the economy by purchasing goods and services with income from outside sources (i.e. transfer payments), bringing "new" money to circulate in the local economy. This new money also creates employment opportunities. The amenities that follow these individuals - higher end housing, fine restaurants, country clubs, and increased shopping opportunities - are on the rise.