Silver City lies about three miles northwest of Dayton

Silver was discovered here after the Comstock discovery in 1859. By 1861 the population was around 1200 with four hotels, saloons, and many facilities for wagons and horses. Silver City also became the main source of animals for use in hauling ore-laden wagons between the Comstock and Carson City. Silver City established the first silver mill around 1862 - Paul's Pioneer. During the 1860s more mills were erected and by 1871 Silver City had 8 mills with 95 stamps.

The ore veins in Silver City were low grade. Almost every family had their own mine and developed it only when money was actually needed.

In 1869 the town went into decline as the construction of the Virginia & Truckee Railroad ruined Silver City's livestock and freighting business.