The British bought the land around Dalhousie from the Raja of Chamba in 1853. They went on to build one of the popular hill resorts and sanatoriums and the town grew fast, gaining a municipality in 1867. In the early 20th century it became a cheaper alternative to the more celebrated hill station of Shimla. Prominent Indian personalities, including the Bengali litterateur Rabindranath Tagore and leader Subhash Chandra Bose, came to stay for some length of time in Dalhousie. Though its importance as a health retreat has declined over the years, Dalhousie continues to attract tourists from adjoining areas.
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