But the heyday of Kissimmee was short-lived. Expanding railroads began to challenge the steamships for carrying freight and passengers. By 1884, the South Florida Railroad, now part of the Plant System, had extended its tracks to Tampa. The Panic of 1893 was the worst depression the U.S. had experienced up to that time, crushing land speculation and unsound debt. Hamilton Disston closed his Kissimmee land operation. Consecutive freezes in 1894 and 1895 wiped out the citrus industry. The freezes, combined with South Florida's growth and the relocation of steamship operations to Lake Okeechobee, left Kissimmee dependent on cattle raising.
Kissimmee had a population of 4,310 in 1950. At that point there was some citrus packing as well as the ranching.
Ranching remained an important part of the local economy until the opening of nearby Walt Disney World in 1971. After that, tourism and development supplanted cattle ranching to a large measure; however, cattle ranches still operate nearby, particularly in the southern part of Osceola County.
On August 13, 2004, Hurricane Charley passed through Kissimmee with winds in
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