Officials in Canada began requiring that each prospector entering Canada on the north side of the White Pass bring with him one ton (909 kg) of supplies, to ensure that he didn't starve during the winter. This placed a large burden on the prospectors and the pack animals climbing the steep pass.
In 1898, a 14-mile, steam-operated aerial tramway was constructed up the Skagway side of the White Pass, easing the burden of those prospectors who could afford the fee to use it. The Chilkoot Trail tramways also began to operate in the Chilkoot Pass above Dyea. In 1896, before the Klondike gold rush had begun, a group of investors saw an opportunity for a railroad over that route. It was not until May 1898 that the White Pass and Yukon Route began laying narrow gauge railroad tracks in Skagway. The railroad depot was constructed between September and December 1898. This destroyed the viability of Dyea, as Skagway had both the deep-water port and the railroad.
Construction of McCabe College, the first school in Alaska to offer a college preparatory high school curriculum, began in 1899. The school was completed in 1900.
By 1899, the stream of gold-seekers had diminished and Skagway's economy began to collapse. By 1900, when the railroad was completed, the gold rush was nearly over. In 1900, Skagway was incorporated as the first city in the Alaska Territory. Much of the history of Skagway was saved by early residents,
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