In January 1848 (not 1850), James W. Marshall found gold at Sutter's Mill on the South Fork of the American River near Coloma, California. The 1849 Gold Rush followed, drawing 300,000+ people, transforming California from Mexican territory to statehood (1850), and reshaping the American West. By 1850, the river's banks were lined with mining camps, and the Gold Rush was in full swing.