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After prospectors discovered gold in the Boise Basin in the summer of 1862, thousands of miners rushed to the area that fall to prepare for operations the following year. Some entrepreneurs realized that the miners needed supplies and sought to develop a community to meet the miners’requirements in southwestern Idaho. Many of these early inhabitants were from California or Oregon, with lesser numbers from Nevada, Colorado, and British Columbia. Simultaneously, wagon trains continued their journey westward through southern Idaho on their way to the Pacific coast. Some of these families remained in Idaho, as they realized that the numerous miners provided a ready market for farmers. The military helped spur the growth of the city by finally approving the construction of Fort Boise in 1863, which also determined the site of the new town. Fort Boise later helped sustain the town during years in which dropping mineral prices devastated the mining industry.

Boise soon took on an aura of permanence, as by the end of 1863, 135 women and 74 children lived in the town. Only Lewiston possessed a similar proportion of families at this early stage. Boise sought to expand its influence beyond that as a regional supply center. Consequently, city leaders sought to transfer the territory's capital from Lewiston to Boise. Lewiston's position continued to grow weaker as its mining industry declined, giving Boise an opportunity. Much to the chagrin of Lewiston's residents, an 1864 resolution moved the capital to Boise. Refugees from Missouri helped give the town Confederate sympathies. Many of these refugees made their home in or near Boise because their supplies ran out, preventing them from continuing their westward flight.

Given the relatively small size of the town, Boise had difficulty attracting railroads. The city wanted the railroad to bring in more people and to expand its trade. However, Boise had to wait until September of 1887 to receive rail service. The expanded service helped Boise increase its population to around 6,000 after 1890.

While some Chinese came to Boise around 1865, completion of the transcontinental railroad created a large number of Chinese in search of work. Many found their way to Idaho. By the 1880s, Boise's Chinatown was the largest in the intermountain region. Idaho's first federal census of 1870 found 4,274 Chinese in the territory, with the majority located in the Boise Basin. The 1882 Chinese Exclusion Act prevented additional Chinese from entering the United States. Some of the Chinese worked as laundrymen, while others worked as truck gardeners. Other Chinese worked as cooks, and by the 1890s some even opened their own restaurants. Regardless of the discrimination that the Chinese faced from white workers, Boise's merchants, landlords, and county officials often supported the Chinese and sought to bring in even more of them to stimulate business and collect additional tax revenue.

After 1870, Basques began arriving in Boise. Though few had experience in shepherding in their homeland in the Pyrenees, many found work in this industry and won a reputation as excellent herders. The Basques could excel at sheepherding, as it did not require any knowledge of English. The Spanish government's increased repression of the Basques after they supported the Carlists in the war of 1872–1876 drove emigration. While many Basques eventually returned home, others remained, and some purchased sheep of their own or moved into other occupations. This was especially true for the second-generation Basques. Consequently, the government started to reduce the Basques’ autonomy after the war. The Basques faced similar persecution from Franco in the 20th century, as he wanted to impose Castilian Spanish on all Spaniards to ensure unity.

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