Gold Rush in California had a very significant impact on the life of people and the city in the era of 1848-1855. California before 1848 was a small city with less count of citizens. After Gold was found in this city, it became the center of attraction for many people. California not only traded Gold in the United States but it also traded Gold in the best part of the world after 1850. Due to heavy Gold mining, there were requirements towards transportations so the government had to build railways and roadways were also improved so that there could be optimum trading of Gold to and from California. Heavy gold mining helped other types of businesses in the United States to gain positive business growth rate. Most importantly, gold rush actually helped the economy of United States to gain a positive growth rate. The Gold Rush undoubtedly led to the development of the city by improving the society. The Gold Rush began near Coloma at Sutter’s Mill after tests were conducted on a shiny metal found there. The tests confirmed that the shiny metal was gold. This news was then published all over the world which led to the development of California. Gold was first discovered in Northern California on a huge scale. Later on, Gold was also discovered in Southern California on a smaller scale . The first discovery was made in Rancho San Francisco.This place is popularly known as Los Angeles. Foundation of Gold in California let people diverse from agriculture and fishing to gold mining.