Located on a ridge between the American River and Indian Canyon, Iowa Hill began growing in 1853 around the Jamison Claim, famous for its gold production. The Jamison was drift mined and later hydraulically mined. The North Star Mine in this area was the first in the state to use a stamp mill to break up cemented gravel that was extracted from the mine. At one time during the boom days, there was a proposal to divide Placer County and make Iowa Hill the county seat. During the area's good times, daily stages ran to Illinoistown (now Colfax) and connected with stages for Dutch Flat and Auburn. The road to Colfax (now paved) is still used today and is still very steep and narrow - a real thrill ride, especially when meeting oncoming traffic.
An 1861 historian said "The business portion of Iowa Hill consists of three large grocery stores, four hotels, five dry-goods and clothing stores, one fancy store, three variety stores, one brewery and soda factory, two hardware and tinware stores, and two butcher shops, besides the usual number of bowling alleys, billiard and lager beer saloons. Iowa Hill also has a splendid Catholic Church, a Methodist Church, a Masonic Lodge, and a Lodge of Independent Order of Odd Fellows, also a public school and a theater."
Three times, the town was destroyed by fire. Now the town consists of a one-room schoolhouse for kindergarten through 8th graders, a volunteer firehouse, community club and park and a charming combination store, post office, tavern and café. It still does not have telephone or electric service, public water supply or daily mail service. The local graveyards provide a fascinating glimpse of the past as there is a log telling of the fates of those who are buried there. Several miners died as a result of a dam breaking upriver during a rainstorm. Mining was clearly a dangerous occupation and caused many premature deaths.