In early 1964, Valdez was a tiny waterfront town on Prince William Sound. Late in the afternoon of Good Friday, the steamship Chena docked at the town's main pier. The Chena was carrying the first shipment of fresh fruit and goods of the year, and about 30 adults and children greeted the ship, standing on the dock, waving and smiling. As Chena's crew prepared to disembark, some of the sailors tossed fresh oranges from the deck to the children. 

A total of 33 people were killed at Valdez harbor, including three crew members on the Chena, which barely stayed afloat. Witnesses said some of the children were still clutching oranges when they were pulled beneath the surface of the waves. 

From on board the ship, "I saw people running — it was just ghastly," M.D. Stewart, captain of the Chena, wrote later about the disaster. "They were just engulfed by buildings, water, mud and everything … that is what has kept me awake for days. There was no sign of them." 

On shore, the waterfront area was completely destroyed. Beyond that, 40 percent of Valdez's homes were damaged, all streets were flooded, and water and sewer lines broke in 150 locations. Roads were broken into chunks that jutted from the ground. A geological study conducted shortly after the quake determined that the entire area would never again be safe. The ground sank permanently in so many places that high tide now covered residential streets. 
In the days following the quake, Valdez residents, still mourning the loss of their friends and relatives at the waterfront, were forced to make a decision about the future of their town. Rather than abandon everything and relocate to Anchorage or another settlement, they voted to move all of Valdez to a new site, on a new harbor, about four miles to the west. The Alaska State Housing Authority agreed to appraise any still-intact homes or buildings in Old Valdez and purchase them from residents. 

Construction began quickly, and within months, the new area was starting to look like a town. A new elementary school was dedicated in the fall of 1964, and the first freighter pulled into the new Valdez harbor in July 1965. In the three years after the quake, Valdez spent $17 million on new roads, schools, government offices, a harbor, a power plant and a hospital. New homes and businesses cost an additional $3 million. 

Old Valdez was razed, and the site was permanently abandoned. Any Valdez residents born in the last 30 years were forced to rely on faded photographs and the memories of older citizens to know what life was like in the original town — until very recently