The site of a gold strike above present-day Canyon Ferry Reservoir in 1864 by Confederate soldiers on parole from the Civil War, Confederate Gulch was at one time the home of Diamond City, the county seat of Meagher County and home to more than 10,000 people. It wasn’t uncommon while panning for gold in the area to come away with more than $1,000 of gold in a single pan.
When the gold ran out, the people left. By 1880, there was virtually no one left living near the gulch or seeking gold there. Today, a small service road, Confederate Gulch Rd. runs parallel to a small creek that empties into Canyon Ferry Reservoir and the Missouri River.