Oregon Department of Fish and Wildlife, Leaburg Fish Hatchery. Leaburg Hatchery is located along the McKenzie River (Willamette Basin) 4 miles east of Leaburg, Oregon, on Highway 126. Leaburg Hatchery was constructed in 1953 by the U.S. Army Corps of Engineers (COE) to mitigate for lost trout habitat caused by construction of Blue River and Cougar dams and other Willamette Valley projects. The hatchery is used for egg incubation and rearing of summer steelhead and cutthroat trout, and for rearing trout.