Peter Olsen was one of the early settlers of Big Meadows, known today as Lake Almanor. Like so many of the residents there of the late 1800s, he operated a dairy among other pursuits. By 1885, his ranch located in the proximity of modern day Chester consisted of 1,300 acres, one of the largest in Big Meadows.
In the early 1900s, the Great Western Power Company began acquisition of the ranches in Big Meadows, with their intention to create a reservoir, a part of their hydroelectric power system. The Olsen family sold nearly a 1,000 acres of the ranch, retaining a small acreage surrounding the ranch house. In the fall of 1911, Olsens, along with their neighbor, Edith Martin subdivided their respective properties to create the town of Chester. Olsen’s Southern Addition consisted of twelve blocks containing 115 lots. In 1914, the Olsen’s built a major addition to their ranch house and now became the proprietors of the Hotel Olsen, a first for that community. Nels and Eula Olsen operated it for many years and on April 4, 1948 they sold the hotel and the remaining Olsen Ranch to Earl McKenzie and the hotel was subsequently closed.