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The confluence of the Moose Jaw River and Thunder Creek was chosen and registered in 1881 as a site for a division point for the Canadian Pacific Railway, whose construction was significant in Confederation of Canada.
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A network of underground tunnels connecting buildings in downtown Moose Jaw was constructed beginning around 1908. They were originally built as an underground steam system that was abandoned. The tunnels were used to hide Chinese railway workers escaping persecution during the Yellow Peril or unable to pay the government-imposed head tax. Entire families lived in the tunnels and worked at above-ground businesses in exchange for food and supplies.
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The tunnels became a hub of renewed activity in the 1920s for rum-running during Prohibition in the United States. They were reported to have warehoused illegal alcohol that was then shipped to the U.S. via the Soo Line Railroad.
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Prince Albert, future king and father of Queen Elizabeth II, paid a visit in 1926.
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The Royal Canadian Air Force under the British Commonwealth Air Training Plan established RCAF Station Moose Jaw in 1940.