The first recorded recreational use of the area that is now the ski and sledding area, known then to Tahoe City locals as "Ski Canyon"

Tahoe Tavern, owned by mining and logging magnate D.L. Bliss,  stays open for the winter season. A toboggan slide, ski jump, and small warming hut are built. During Tahoe Tavern operations, the hill becomes known as the Tahoe Tavern Winter Sports Grounds. Visitors are transported by sleigh to watch ski jumping exhibitions, dog sled races, and to go sledding.

During a time when most people did not know how to downhill ski, The Tahoe Tavern Winter Sports Grounds hosts a number of exhibitions for the enjoyment of Tahoe Tavern guests. These exhibitions include ski jumping tournaments, dog sled races, and cross-country ski races.

A ski jump with a trajectory of 260 ft. is constructed at the Tahoe City Winter Sports Grounds under the supervision of professional ski jumper Lars Haugen. This jump becomes host to a number of ski jumping exhibitions that hundreds would come to spectate.

The National Ski Association selects Lake Tahoe as the site of the 1932 National Ski Tournament. With less than a year to prepare, the Lake Tahoe Ski Club scheduled a State Championship meet for February 1931.

The 1932 National Ski Jumping Tournament at the newly-christened Olympic Hill was a moment of glory for Tahoe ski-sport enthusiasts. Governor James Rolph was on hand, as was popular actress Anita Page, Queen of the Meet. Early February storms threatened to cancel the event, but abated just in time for local residents to foot-pack the hill to perfection.

Norwegian Naval Officer Kjell “Rusty” Rustad was searching for a postwar enterprise to suit his two favorite pastimes: skiing and sailing. He was an expert at both, and Lake Tahoe seemed to offer opportunities worth pursuing.

In 1947 Rustad leased the parcel once known as the Tahoe Tavern Winter Sports Grounds from the Forest Service and, working alone with an axe and handsaw, began to prepare the north-facing slope for use as a ski hill. The following year Rustad hired local carpenter Bert Brolund, and worked with him to build a log warming hut using the tall, straight red fir trees removed from the hill. A living quarters for the Rustads and two dormitory-style rentals followed.

On January 22, 1949, Rustad, his wife Marion, and daughter Binth held an open house to introduce the community to their new ski venture, which they named ‘Granlibakken’, a Norwegian phrase meaning "a hillside sheltered by fir trees". Rusty arranged to teach the students of Tahoe Lake School to ski, extended the existing rope tow, and added a second tow for beginners, while Marion took care of the business.

The hard work of Rustad and other volunteers to prepare a second, smaller ski jump for the use of local youngsters paid off on March 15 & 16, 1952, when the Junior National Ski Championships were staged at Granlibakken.

Rusty sold acreage across the road from the ski hill to UC Berkeley’s International House, whose volunteers built a lodge.

Cal Alumni Association purchased the International House property in 1958, where it planned to build a ski lodge for the use of UC Alumni, including new kitchen facilities, a 150-person dining hall, a swimming pool, and two buildings to provide sleeping accommodations for families. Built and staffed primarily by UC students, the Alumni Center was completed in 1960.

The Tahoe Alumni Center was sold to New York publisher M. Hughes Miller, who built the canyon’s first condos, added tennis courts and developed The Four Seasons, a popular dinner house. In 1974, Miller would be riding the wake of his company’s huge bestseller, The Joy of Cooking. However, his Tahoe venture did not fare so well, succumbing to bankruptcy in 1976.

Bill and Norma Parson purchased the resort in 1978, reviving its previous Scandinavian moniker, "Granlibakken"