After discovering Cliff Palace the two cowboys decided to separate and search for more ruins. Mason rode off to the north while Wetherill went more to the west. After riding a short distance Wetherill came to the rim of a small canyon. Riding around the head of the canyon and looking back under the eastern cliff he saw another great cliff dwelling, pictured below. Since it was late afternoon he did not enter the ruin but returned to the camp near Cliff Palace.

While not as large as Cliff Palace, this second cliff dwelling, which they later named Spruce Tree House, was in a better state of preservation. Many of its walls still stood at their original height, touching the roof of the cave. Several of the rooms had their original ceilings. Spruce Tree House has since proved to be the best preserved large cliff dwelling in the Mesa Verde.

At the head of the canyon only a hundred yards from Spruce Tree House was a wonderful spring. Because of the fine flow of water the cowboys often camped there. Later park headquarters were located there and the first road came directly to it. It was because of this permanent water supply that all modern developments were located in the Spruce Tree House area.