The tour continues southward through rolling, sparsely settled country, once covered by a heavy forest. Small gardens, poultry ranches, and dairy farms alternate with stands of second-growth timber and cutover land.

Established in the 1890s by the Co-operative Brotherhood, it was named Circle City, with buildings laid out on the periphery of a circle. When the colony failed in 1908, the present name was adopted for a pioneer settler who was not a member of the colony. A second story for the name origin comes from the fact that the cooperative had a cigar factory and named their place for a kind of tobacco from Burley, Kentucky.

A broken circle of frame buildings along a lagoon at the head of Carr Inlet mark Burley, which was started as a co-operative colony called Circle City—its buildings being laid out on the periphery of a wide circle reaching from the hills down to the bay shore where the sawmill stood. The board of directors of the co-operative selected colonists to join the settlement on the basis of their crafts and skills. A hotel, a store, a schoolhouse, and a number of dwellings were laid out along the water’s edge, and a long sluiceway was constructed from a creek in the hills to bring water to the town and the mill. Land was cleared, and those who understood agricultural practices turned to farming. For a number of years, the affairs of the colony ran smoothly. The exhaustion of merchantable timber, however, and the consequent closing of the mill raised acute economic problems. This difficulty, together with differences over policies, resulted in the disintegration of the town’s organization and the changing of the name to Burley. By the 1940s only the community hall and a few dignified old houses remained.