The disease probably erupted in farmed elk herds and was only first identified in 1997. Little is, therefore, known about how it first occurs in deers. The fact that it was found in farmed herds of cervid animals means they were probably fed the same type of cattle feed fed to cattle which could potentially result in the spread of prions to them and evidently did, but it is impossible now to trace this back or get anyone (e.g. deer/elk farmer) to admit to this......but they're working on it.
The following website has an extensive FAQ and discussion of prion disease in cervids.
http://www.health.state.mn.us/divs/idepc/diseases/cwd/
Also this advisory from the USDA succintly summarizes the history to date:
L. H. Creekmore
USDA-APHIS-VS
National Animal Health Programs Staff
Fort Collins, CO
CWD was first detected in farmed animals in the United States in 1997 in an elk herd in South Dakota. Since then the disease has been identified in 23 additional farmed elk herds and one farmed deer herd in a total of eight States (CO, KS, MN, MT, NE, OK, SD, WI). These herds were discovered through routine surveillance, tracing, and depopulation efforts. Thirteen of these positive herds traced back to three source herds, one in SD, one in MT and one in CO. Five positive herds were located in or near endemic areas where CWD occurs in wildlife and have no known relationship to other known positive herds. Three positive herds were detected in August and September of 2002. Epidemiological investigations to understand the source of infection of the herds associated with the endemic area as well as the newly identified herds are continuing. Since 1998, twenty- one of these herds have been removed; about half of these were depopulated in the past year with the use of USDA funds. In addition to these positive herds, USDA assisted in the depopulation of elk herds within the endemic areas of Colorado and Nebraska. Of the four remaining herds, one in Nebraska has had its quarantine lifted after more than four years of surveillance with no further evidence of the disease. A second herd in Colorado is being reviewed for inclusion in a State research program. Plans for depopulation of the last two herds, one in MN and one in WI are underway.