The Folsom area was first home to Maidu Indians, hunters and gatherers who lived peacefully along the Yuba and American River drainages. They called themselves “Nisenan,” meaning “from among us, on our side.” With the Gold Rush era, however, the Native-American population began disappearing as miners and commercial activities displaced the native societies from the rich river valleys.
 
Jedediah Strong Smith was the first person of European descent to explore the region, camping in the Folsom area with a company of trappers in April 1827. Smith’s initial expedition led the way for other trappers who arrived in the 1830s to hunt beavers along the American River. In 1844, California Governor Manual Michaeltorena granted this territory to William Alexander Leidesdorff, a San Francisco trader. The land grant included 35,000 acres of land known as Rancho Rio de Los Americanos. At Leidesdorffs death in 1848, this  undeveloped property passed to the estate of his mother.
 
With the discovery of gold in 1848, the Folsom area saw the development of several communities whose prosperity was tied to the presence of gold. One of the earliest mining camps established was Mormon Island, located at the juncture of the north and south forks of the American River. Within weeks after gold was found at Sutter’s Mill, a small group of Mormons was taking gold at Mormon Island. By 1853, Mormon Island boasted a population of 2,500. Eventually, the completion of the railroad to the town of Folsom led to the decline of Mormon Island, and by 1880 the town had nearly vanished. This area is now under Folsom Lake.
 
Other mining towns of significance that developed in Folsom’s vicinity included Negro Bar, a mining camp on the south bank of the American River. Prairie City was a sizable town with over 2,000 people during the 1850s. As the gold ran out, town residents moved on to other places, and by 1865 the town was gone, hardly leaving a trace of its existence. Joseph Libby Folsom, a captain in the U.S. Army, arrived in San Francisco, and by 1849 he became interested in acquiring California land ricji with the promise of gold. He soon left for the Danish West Indies to seek out the heirs of Leidesdorffs property. He contracted with Leidesdorffs mother to purchase his San Francisco holdings, as well as the Rancho Rio de Los Americanos, for $75,000. However, upon his return to San Francisco, Folsom found his right to the title of the property contested and became caught in a legal tangle that lasted for years. 

Meanwhile, Folsom hired Theodore Judah and two other engineers to survey the land near the mining camp of Negro Bar for a railway and a township called Granite City. Folsom died in 1855 before he could see the development of his property; however, in February 1856, the Sacramento Valley Railroad completed its first train excursion from Sacramento to the new town of Folsom, renamed from “Granite City” to “Folsom” in his honor. With the arrival of the railroad, Folsom prospered as a transportation huh and gateway to the Mother Lode. Stage and freight lines running to communities throughout the gold country met the train in Folsom. Sutter Street became the center for merchants, hotels, and commerce, as well as the terminus for the Pony Express from July 1860 to July 1861, allowing the Pony Express rider to transfer the mail carried in the mochilla to the awaiting train. During the 1860s, visitors and residents of Folsom came from around the world. For example, Folsom was home to one of the largest Chinese populations on the West Coast. The town’s newspaper, the Folsom Telegraph, has been in continuous publication since 1856, albeit under a variety of names. With this strong beginning, Folsom saw significant developments in subsequent years. In 1880, Folsom Prison was established as the second penitentiary in the state. The Folsom Powerhouse completed the first commercial transmission of electricity over a long distance (22 miles) on July 13, 1895, when electricity was sent to Sacramento. The Folsom Powerhouse remained in operation until 1952. Early gold mining methods were replaced by dredges that extracted millions of dollars of gold from the Folsom area. The Natomas Water and Mining Company operated dredges in Folsom from the 1850s to the 1960s, greatly influencing the development of this community. In recent years, Folsom has experienced tremendous growth, as city services to a growing population are exceptional. Community traditions, celebrations, and recreational activities are enjoyed by many Folsom residents. The influx of high-tech oriented corporations reflects Folsom’s innovative past and has contributed to the favorable economic conditions within our community today.