When Dick Harris and Joe Juneau returned to Sitka with news of their find and the rush was on. Prospectors flocked to the area and began staking claims. A French Canadian by the name of French Pete Errusard learned of a gold bearing outcrop on Douglas Island across the Gastineau Channel from the new town of Juneau.
He staked adjacent claims in 1881 that were eventually sold along with others to John Treadwell, who was representing California investors. The mining town of Treadwell was soon established along with the town of Douglas City. Juneau and Douglas grew along with the mines as more people came to the area not only to mine but to start businesses.
Gold mining was the driving force behind this growth. At first placer mining was practiced then miners attempted to work the larger, higher grade quartz veins they encountered by drilling and blasting to break the gold-bearing quartz from the surrounding waste rock. Eventually, the prospectors began to consolidate adjoining properties and attack the quartz veins on a larger scale.
By the 1890's, several of the small mining companies consolidated and became the Treadwell Group on Douglas Island.
As mining grew and large companies expanded the workings, it became apparent that Juneau and Douglas would not be just "boom and bust" gold camps. Rather, they enjoyed growing prosperity built on the mines, with their great mechanized mills and large payrolls. The three large mines, the Alaska Gastineau, the Alaska Juneau, and the Treadwell drove the economy.
The latter two became the largest gold producers of low grade ore in the world, recovering more than $130 million from the mountain rock stamped to dust in the huge mills.
Douglas grew into a thriving community along with the mining camp of Treadwell. The town was called by various names including New Town, Edwardsville, Douglas City and finally Douglas. Douglas Island, from which the town name was derived was named in 1798 by Captain Vancouver for John Douglas, the Bishop of Salisbury.
A group of Treadwell employees got together and appointed a townsite committee that applied to the U.S. Land Department for a townsite land grant covering 14 acres. A survey was completed in 1885 and lots were ready to be sold.
The majority of people lived in tents at first and soon log cabins began to appear. By 1886 a number of families of Treadwell employees started to arrive. Some of the first permanent residents were Richard McCormick, Nickolas King, George Shatter, Mike McKanna, P.H. Fox, and Henry Mead.
Tlingit families settled in the area from around Southeast Alaska, many from the Taku River area. They lived along the waterfront between the mine and the town of Douglas in the Douglas Indian Village on houses set on pilings. The Natives were employed as laborers at the Treadwell mines and for construction of the Treadwell Ditch which brought water to the mills.
The first bakery was opened by P.H. Fox and Mike McKanna.
By 1888, Frank Tibbits and Tom Fisher installed a boiler and engine in a Columbia River type sailboat and enclosed it to carry about twelve passengers. The little vessel was called "Marion."
The Juneau Douglas Navigation Company was established in early 1890's and soon a wharf was built at the foot of D Street. Alaska Electric Light & Power was organized around 1892 that served both Juneau and Douglas.
Douglas incorporated in 1902 as a first class city but a townsite patent wasn't granted until 1918. City government was soon established and Douglas began rivaling Juneau.
Numerous streets were planked or graveled, water and sewer service was started and fire hydrants were installed. The fire department that was organized in 1889 was equipped with a hose cart.
A weekly newspaper called the Douglas Island News was established in 1898. There were several small dairies, a fish packing plant, a barrel factory, a cigar manufacturing plant, cabinet making and mortuary businesses, jewelers, steam laundries, and a three story school.
Doctors and dentists practiced in a hospital run by the Sisters of St. Ann which was paid for by the Treadwell Gold Mining company. By 1910 the population had grown to 1,722.
The Douglas Bridge, completed in 1935, created a physical tie between the communities.
In February 1937 disaster struck once again as a fire burned businesses on Front Street and moved up "D" Street into the heart of the townsite along Third Street. Blocks of business property were destroyed along with the school, city offices, churches, and many residences.
Among the items burned were the city records dating back to the 1890's. Among them were vital statistics records from 1909 to 1920; old cemetery records by W. Boyd from 1900 to 1910; numerous burial lists, records and papers; revised cemetery record 1927; and chart and burial plot plat of the cemetery.
During the early years of mining there were numerous mining accidents many of which resulted in death. Not only were miners killed, but diseases such as diphtheria, small pox, and influenza took a good percentage of lives in Douglas and Treadwell, as did infant mortality and old age.
By 1939 the population dropped to around 593 residents.
In 1970 a political tie was secured when Douglas was incorporated with the City and Borough of Juneau.