Paepcke is remembered as the Grand Dame of Aspen due to her love and promotion of the small mining town into the skiing destination it later became. Walter and Elizabeth founded the Aspen Music Festival and School in 1949, and Walter served as the festival's director until 1954 when he appointed baritone Mack Harrell to take over. The Aspen Skiing Corporation was founded in 1946, and the city quickly became a well-known resort. Aspen hosted the FIS World Championships in 1950. Paepcke with her husband Walter also played an important role in bringing the Goethe Bicentennial Convocation to Aspen in 1949. It was an event held in a newly designed tent by the architect Eero Saarinen. Due to the Paepcke's promotion and influence Aspen became an internationally known ski resort and cultural center, home of the Aspen Music Festival and School. The skiing haven continued to grow with the development of three additional ski areas, Buttermilk (1958), Aspen Highlands (1958), and Snowmass (1967). In 1968, Paepcke donated a 25-acre property to establish the Aspen Center for Environmental Studies.