Hydraulic mining began in 1852 near Yankee Jim's. This method of mining used a monitor to spray water under high pressure against the hillsides to wash away the dirt and gravel from an ancient riverbed. The runoff was diverted through a sluice where the heavy gold settled to the bottom and was trapped in the ridges. The Duncan Hotel was built in Yankee Jim's in 1870 when mining was flourishing and was the oldest landmark in the community until it burned in July 1929.