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About Deadwood, SD The settlement of Deadwood began illegally in the 1870s, on land which had been granted to the Lakota people in the 1868 Treaty of Fort Laramie. The treaty had guaranteed ownership of the Black Hills to the Lakota people, who considered this area to be sacred. The settlers' squatting led to numerous land disputes, several of which reached the United States Supreme Court. Everything changed after Colonel George Armstrong Custer led an expedition into the Black Hills and announced the discovery of gold in 1874, on French Creek near present-day Custer, South Dakota. This announcement was a catalyst for the Black Hills Gold Rush, and miners and entrepreneurs swept into the area.
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