Canyon City sprang up soon after the discovery of gold in Canyon Creek in 1861, though a note identifies the discovery as actually occurring in June 1862. When Grant County was formed in 1864, Canyon City became the county seat. Meanwhile, "Lower Town" developed a mile downstream and was named John Day in 1865. Prosperity continued with the mining of nearly 50 tons of gold through the 1800s. Gold brought 10,000 people to the John Day and Canyon City area, including five to six thousand Chinese. The nearby Kam Wah Chung museum stands as a memorial to this Chinese heritage and is one of several buildings in the area on the National Register of Historic Places.