Bonanza was inhabited from 1876 and became an established mining town in 1878. The mill near the mine made it necessary for a new town to be built, Custer, just a few miles further. The towns grew together, supported by the Lucky Boy, Black, and the General Custer Mines.
The town was bustling in its heyday with a school, boarding house, many shops and restaurants, a hotel, and several saloons. Even a toll road was built from Bonanza to Challis in 1879. No church was ever constructed, but there are two cemeteries-one serving the townsfolk, the second further up the hill. Boot Hill was going to be the new cemetery. But due to the circumstances of the three buried there, the people thought better of it and left Lizzie and her two husbands alone. In two grass fires, one in 1889 and the second in 1897, the population dwindled, and most miners moved to Custer.
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