However they returned almost a century later and finding silver, forced the natives to work in the mines until the Pueblo Revolt of 1680. Thirteen years later, in 1693, the Spanish Crown reconquered the area.

Spaniards continued to look for gold but also began to establish farms and ranches in the area. However, the region remained fairly unpopulated until large amounts of coal were discovered around 1835. Just five years later, placer gold deposits were discovered in the San Pedro Mountains and the town of Madrid began to grow as more and more prospectors arrived in search of their fortunes. During the occupation of Santa Fe in 1846, General Stephen Kearny sent troops into the area to build Fort Marcy in Santa Fe.

The town of Madrid (pronounced with the accent on the first syllable: MAD-rid, not Ma-DRID) was founded in 1869, but it wasn’t until the 1880’s when the Santa Fe Railroad arrived in the area, that coal mining began on a large scale. By this time, the short lived gold had played out, and most of the solitary miners gave way to larger companies who moved in to develop large coal mining operations.

By 1892 the yield from a narrow valley known as "Coal Gulch" was large enough to warrant the construction of a 6.5 mile spur from the Santa Fe Railroad.

The rich coal mines upon which Madrid sat upon, covered some 30 square miles, connected by a network of tunnels that made up the Lucas & White Ash, the Peacock, and the Cooke mines. During this time over 3,000 people lived and worked in Madrid, exceeding Albuquerque in population.

In 1906, all coal production in the area was consolidated at Madrid, with the Albuquerque and Cerrillos Coal Company creating a “company town” that supported about 3,000 people. Providing the residents with most all its needs, the company provided housing, brought in as much as 160,000 gallons of water daily in tank cars, and provided medical care for their employees.

In 1919, a man named Oscar Huber, who had worked for the company since 1910, was promoted by George Kaseman, as Superintendent of Mines for the Albuquerque and Cerrillos Coal Company in Madrid.

Coal production peaked in 1928, when over 180,000 tons were shipped out of Madrid on coal cars. In 1936, when the owner was killed in a mine accident, Huber gained a controlling interest in the mine and continued to operate a friendly working environment for the employees. In fact, when the Mineshaft Tavern burned to the ground on Christmas Day, 1944, he rebuilt it. In 1947, Huber purchased the town of Madrid and the surrounding coal lands.

But the boom was not to last for Madrid. When natural gas began to be the more popular fuel for home heating, the demand for coal began to fall. The town of Madrid collapsed along with the coal market. In 1954, the Albuquerque and Cerrillos Coal Company ceased to operate and almost all of its residents moved away. In fact, in that same year, an ad in the Wall Street Journal listed the entire town for sale for $250,000. However, there were no takers.

By the early 1970’s Oscar Huber’s son, Joe, by then, the owner of the entire town site, began to rent or sell a few of the old company houses to a number artists, craftsmen, and other individuals wanting to make their homes in the mountains. Determined to breathe new life into the town, he succeeded as more and more people moved into the area and Madrid was reborn.

Today, most of Madrid's remains have been restored or preserved, including the Miner’s Amusement Hall, the old Catholic Church, the Coal Mining Museum, most of the store fronts, and many of the wooden company houses. However, on the outskirts of town, you will still some of these tumbling down buildings in their original state.

For those that are looking for a different kind of experience, Madrid and the entire surrounding area is said to be haunted. Numerous ghost sightings have been reported in homes, in the old church, in the cemetery, and the Mine Shaft Tavern. Often reported wandering the arroyos surrounding the town, is the spirit of La Llorona. Though many believe that this ghostly Weeping Woman is nothing but a legend, their are many New Mexicans that believe this tall, thin, natural beauty haunts many places in the Southwest.

One often reported sighting is that of a silent cowboy who has often been seen escorting a Spanish woman, dressed in her best finery, down Main Street. Others have allegedly seen and heard all types of ghostly forms in the cemetery.

But the most haunted of all places in Madrid is said to be the Mine Shaft Tavern. Though it burned down on Christmas Day, 1944, Madrid's town father, Oscar Huber, rebuilt the tavern for the many coal miners of the area. It reopened in 1947 and has been open ever since. Some remodeling of the old saloon was completed in 1982; however, no changes were made to its historic bar -- the longest bar in New Mexico. Today, this historic saloon continues to serve the many visitors along the Turquoise Trail.

Staff as well as guests have often seen glasses fall from their perches and crashing to the floor in bits and pieces. Doors are often seen opening with unseen hands and swinging back and forth. From the six inch thick adobe walls, mysterious sounds are often heard and after closing hours, numerous objects and furnishings are moved about. However, the most unsettling reports are the stories told by staff of looking in the mirror and instead of seeing their own reflections, they see a ghost.

Believe it or not.

Madrid is about 27 miles southwest of Santa Fe, New Mexico on NM 14.