Gold was discovered in this area in 1904, and several mining camps quickly grew around the finds. Rhyolite was founded in 1905 and became a city of dreams centered on gold, prosperity, greed, and speculation. By 1906 it was developing into a modern town with indoor plumbing, electricity, and other luxuries, but the boom was short lived. The mines began to fail, and by 1910 people were leaving and the mines were closing. In 1907, Rhyolite, named for the prevailing rock in the area, had an estimated population of 5,000 to 8,000 people, with 18 grocery stores, 50 saloons, 19 lodging houses, 6 barbers, 4 bakeries, 35 gaming tables, 8 doctors, and 3 railroads. Most of the town later disappeared from the landscape as some buildings were moved to new towns and others fell down or were taken apart for their materials.