Kane’s “Blue Lady” Legend: Wyoming’s Haunted History Draws Interest to Cemetery

The ghost of Matilda Waters, known as the “Blue Lady,” is said to haunt the old Kane Cemetery in Wyoming, drawing curious visitors and descendants to the site for decades, Cowboy State Daily reports.

Though the town of Kane was abandoned in the 1960s, tales of the spectral Blue Lady linger in local folklore, believed by some to be Matilda’s spirit searching for the children she killed in a tragic 1921 incident.

The Kane Cemetery, located near the Shoshone River, holds a history of untold stories and the memory of Matilda’s tragic actions. In a 1921 tragedy, Matilda Waters, reportedly dealing with mental health struggles, stayed home one evening with her children while her husband, Jim, and neighbors gathered nearby. That night, she allegedly attempted to end the lives of her six children before fatally shooting herself.

Karen Spragg, curator of the Lovell/Kane Area Museum, sometimes leads tours of the Kane Cemetery, sharing the haunting tale of Matilda, Jim, and their children. According to Spragg, Matilda’s husband rushed home after hearing gunfire, finding Matilda at the door, bleeding from a chest wound. Though he saved some of the children initially, they succumbed to their injuries days later. Over time, local lore transformed Matilda into the Blue Lady, a spectral figure wandering the cemetery grounds, supposedly in search of her lost children.

Spragg has collected numerous accounts from locals who claim to have seen a blue light near the cemetery. One of these reports came in the 1960s from a mother and daughter driving nearby, who described a blue figure floating across the road in front of them. Other sightings have placed the Blue Lady’s ghostly figure as far as Crystal Creek.

Beyond stories of Matilda, Spragg also explores other mysteries at Kane Cemetery. She uses dowsing rods to locate unmarked graves, which can sometimes offer descendants, like Stacy Bair and Nicole Mickelson, a way to connect with their family buried there. Mickelson described the experience as surreal, feeling an eerie closeness while dowsing on her grandparents’ graves.