After the discovery of gold near Pierce in 1860, miners flocked to the area in 1861 and began prospecting streams all around the Clearwater drainage. According to Ralph Space's book, The Clearwater Story, most were experienced miners from the California gold rushes.

Mines were found around Moose Creek and Independence Creek by a wandering band of prospectors in 1862. This placer ground paid them well for a short time, but was limited.

The second influx of people to the area was in the late 1860s and was stimulated by other prospectors. It is said that fully 200 people flocked to the area and that resulted in the founding of Moose City with a restaurant, saloon, jail, hotel, butcher shop and three general stores. The diggings produced for three years supporting the population. In the 1870s the diggings began to fail and Moose City was soon abandoned, though a few people continued to mine the area for 12-15 years, Space said.

Until 1924, parts of the jail could still be seen, but shortly thereafter the Forest Service built a work camp on the site and tore down the jail building. At the writing of his book in the mid 1960s, Space said nothing was left of Moose City except a few level spots and a historical sign.

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