Fort Bayard began in 1866 when Company B of the 125th U.S. Colored Infantry under the command of Lieutenant James Kerr established an encampment near the gold and silver mining communities of Pinos Altos and Silver City, New Mexico. This location commanded Apache war trails from their lands near the present Faywood Hot Springs to numerous mining areas. According to Lieutenant Kerr, it was ". . . a beautiful situation on the eastern slope of the Pinos Altos Mountains," with abundant wood, water, and forage.