The Town of Dolores is a Statutory Town in Montezuma County, Colorado, United States. The population was 936 at the 2010 census. It is one of three incorporated municipalities in the county.Dolores is located at the mouth of the Dolores Valley and the upper reaches of McPhee Reservoir, approximately 40 miles from the Four Corners Monument. Established as a station on the Rio Grande Southern Railroad, it replaced the earlier town, Big Bend, now covered by McPhee Reservoir. McPhee Reservoir is named for a company town founded by New Mexico Lumber Company, that is now covered by the reservoir.