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The discovery of gold in 1848 brought tens of thousands of miners from around the world during the California Gold Rush. In addition, many more thousands came to provide goods and services to the miners. On April 25, 1851, the fast-growing county was formed from parts of Sutter and Yuba Counties with Auburn as the county seat. Placer County took its name from the Spanish word for sand or gravel deposits containing gold. Miners washed away the gravel, leaving the heavier gold, in a process known as "placer mining".
Gold mining was a major industry through the 1880s, but gradually the new residents turned to farming the fertile foothill soil, harvesting timber and working for the Southern Pacific Railroad. Auburn was settled when Claude Chana discovered gold in Auburn Ravine in May 1848, and it later became a shipping and supply center for the surrounding gold camps. The cornerstone of Placer's courthouse, which is clearly visible from Interstate 80 through Auburn, was laid on July 4, 1894. The building was renovated during the late 1980s and continues to serve the public with courtrooms, a sheriff's office and the Placer County Museum. Roseville, once a small agricultural center, became a major railroad center and grew to the county's most populous city after Southern Pacific Railroad moved its railroad switching yards there in 1908.
Loomis and Newcastle began as mining towns, but soon became centers of a booming fruit-growing industry, supporting many local packing houses. Penryn was founded by a Welsh miner, Griffith Griffith, who established a large granite quarry. Rocklin began as a railroad town and became home to a number of granite quarries. Lincoln and Sheridan continue to support ranching and farming. Lincoln also is the home of one of the county's oldest businesses, the Gladding, McBean terra cotta clay manufacturing plant, established in 1875.
The 1960 Winter Olympics were hosted in Squaw Valley, in Placer County.
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