Chama, elevation , is an unincorporated community in Huerfano County, Colorado, United States. History. The community was settled around 1869 and was originally called Crestones. The first settlers were from Chama, New Mexico. An old adobe church, called Our Lady of Guadalupe, still stands in the community. Geography. Chama is located southwest of Gardner, Colorado and on the east side of the Sangre de Cristo Range along County Road 575 in the Upper Huerfano River Valley.