Dawson City (Yukon) Dawson City's flamboyant tale began on August 16, 1896, when three adventurers discovered gold on a small tributary of the Klondike River. News of the 'bonanza' spread like wildfire, and in just one year, hundreds of entrepreneurs set up shop to service the gold 'stampeders.' Dawson City is a living community, where historic structures are preserved to commemorate the Gold Rush, and yesterday and today dance cheek to cheek.