As of the census of 2000, there were 1,119 people, 478 households, and 292 families residing in the town. The population density was 1,938.4 people per square mile (744.9/km²). There were 524 housing units at an average density of 907.7 per square mile (348.8/km²). The racial makeup of the town was 88.65% White, 2.23% Native American, 0.09% Pacific Islander, 7.86% from other races, and 1.16% from two or more races. Hispanic or Latino of any race were 12.42% of the population.
There were 478 households out of which 32.0% had children under the age of 18 living with them, 43.7% were married couples living together, 13.2% had a female householder with no husband present, and 38.9% were non-families. 33.7% of all households were made up of individuals and 13.2% had someone living alone who was 65 years of age or older. The average household size was 2.31 and the average family size was 2.93.
In the town the population was spread out with 25.8% under the age of 18, 9.0% from 18 to 24, 26.1% from 25 to 44, 25.5% from 45 to 64, and 13.6% who were 65 years of age or older. The median age was 38 years. For every 100 females there were 93.6 males. For every 100 females age 18 and over, there were 89.5 males.
The median income for a household in the town was $25,223, and the median income for a family was $32,188. Males had a median income of $27,708 versus $17,292 for females. The per capita income for the town was $13,946. About 11.8% of families and 16.1% of the population were below the poverty line, including 22.5% of those under age 18 and 15.5% of those age 65 or over.
Since 2000, new residents in the area include workers who commute to Durango and Cortez, as well as retirees seeking a milder climate and more reasonable prices than to the south. However, the town and valley remain divided into the three traditional groupings: the ranching families, the LDS farming families, and the arts community; normally "fringe groups" in larger towns, these groups are virtually the entire community of the Mancos Valley, and largely dictate its politics, economy, and society.