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About Canyon City,OR Canyon City was established in June 1862 as a result of the discovery of gold in Canyon Creek, which flows from the south to meet the John Day River at John Day. As up to 10,000 miners flocked to Whiskey Gulch and other sections of the canyon during the early stages of the rush, land values between Canyon City and John Day rose to about $500 per square yard ($600/m 2). Little of this estimated population influx is reflected in U.S. Census Bureau tallies for Canyon City, which have fluctuated between 250 and about 700 since 1870. Estimates of the total value of Canyon Creek's gold varied.
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