Marshall in 1848 sparked the California Gold Rush, the small town now known as Placerville was known as Dry Diggins after the manner in which the miners moved cartloads of dry soil to running water to separate the gold from the soil. Later, in 1849, the town earned its most common historical name, "Hangtown," because of the numerous hangings that had occurred there. By 1850, the temperance league
and a few local churches had begun to request that a friendlier name be bestowed upon the town. The name was not changed until 1854, when the City of Placerville was incorporated. At its incorporation, Placerville was the third largest town in California. In 1857, the county seat was then moved from Coloma to Placerville, where it remains today. Placerville was a central hub for the Mother Lode region's mining operations. The town had many services, including transportation (of people and goods), lodging and banking, and had a market and general store. The history of hard-rock mining is evidenced by an open and accessible Gold Bug Park & Mine, now a museum with tours and books.
