Sutter employed a group of Mormons, under the supervision of James Marshall, to build a lumber mill on the American River at Coloma. The men worked on a tailrace to guide water from the mill back to the river. By day they loosened the ground, and by night the river ran through the tailrace and carried off the debris from the day’s work. On the morning of January 24, 1848, Marshall inspected the prior night’s activity by the river, saw a glimmer, bent over, and picked up a gold nugget the size of a pea. News of this find and of other gold discoveries fueled the Gold Rush of 1849.