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In 1887, Murphy formed the Arizona Improvement Company. His objective was to sell the land and water rights south of the canal. Murphy had to raise capital from out of state sources in order to meet payroll and construction expenses.[4] Murphy decided to refer to this land as "Glendale". In order to develop and interest potential investors and settlers in this new town, Murphy decided to provide a better way of access from Phoenix to Glendale and ending in the town of Peoria by building an 18 mile long diagonal road which he named Grand Avenue.
In 1891, Burgess Hadsell worked with Murphy to bring 70 Brethren and River Brethren families to Glendale to form a temperance colony. Soon settlers, attracted by the town's ban on alcoholic beverages, continued to arrive. In 1895, Murphy platted the original town site and amended the plat to include a town park and some business lots. The construction of a railroad from Prescott to Phoenix was made possible with an exchange of the right-of-way made by Murphy along Grand Avenue.[3] The railroad allowed Glendale settlers to transport goods to the north and easily receive building materials.