Volcano began in 1848 with soldiers of Colonel Stevenson’s Regiment and was named by miners for its apparent volcanic appearance. The first California rental library was established here in 1850, and one of the first Little Theaters was founded by the Volcano Thespian Society in 1854. The town also has interesting Civil War history. In 1934, a plaque was placed in Pine Grove as an obituary when a planned dam was expected to flood Volcano, but geology and water rights negated the plan, so Volcano did not drown.