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Blue Valley, located in the northeastern corner of Nebraska, 25 miles south of Sioux City, South Dakota, was founded in 1862 by Cornelius Blue, a settler from Connecticut. After the construction of a railroad line running through the valley twenty-five years later, the Blues sold their land to a developer. In 1903, Blue's son founded Cornelius Blue University, which became a technical college in 1926 under a new name, Blue Valley College. The community's economy is largely based on providing services for the college's students.