The concept of developing a residential community with a golf course in the Bethany Beach area began in July 1982. Donald Wilgus contacted golf course architect Algie M. Pulley to explore the cost and feasibility of creating a golf community near the waters of Indian River Bay. After Mr. Pulley's visit and recommendations, Mr. Wilgus decided to form a limited partnership and Cripple Creek Properties, L.P. was born.

The property now known as Cripple Creek had long been the holdings of the Clarence Holt family. The land produced strawberries, winter wheat and the Delmarva Peninsula's most abundant livestock, chickens. In earlier days, a small lumber mill was in operation directly across from what is now the club entrance. The original 142 acres for the Cripple Creek Project were purchased from the Bay Colony Limited Partnership in 1983.
On June 17, 1983 ground was broken for the front nine. In August of that year, one hundred guests attended an introductory party on the property, utilizing two farm tractors with wagons. Those in attendance were driven over the site and shown what they could expect. Many of that day's guests have since become good and faithful members of Cripple Creek Golf & Country Club.
In February of 1984, Mr. Wilgus hired the club's first grounds superintendent and golf professional. On July 21, 1984, the front nine officially opened for the forty-eight charter members. Although the golf was rained out after two holes, the enthusiasm for the new club was not dampened. An afternoon party at the new Bay Colony clubhouse was well attended and gave the new members an opportunity to get better acquainted. The back nine was under construction at this time, but would not be available for play until it's opening on Memorial Day weekend, 1986.