The California Development Company was formed in 1896 as a replacement for the defunct Colorado River Irrigation Company, which had been started a few years earlier for the purpose of planning an irrigation system for the lower Colorado Desert in California. The rich, silty soil of the area was found to be suitable for agriculture, but wells tapping groundwater brought up an inadequate supply of water for such a hot, arid region. The California Development Company took over the project of diverting Colorado River water into the Coachella and Imperial Valleys in the Salton Sink, a dry lake bed which today contains the Salton Sea, hoping to turn the desert green with agricultural fields. The first canals were being constructed by 1900 under the guidance of chief engineer George Chaffey.