The original settlement was called Michigan City, but after erosion threatened the town it was moved up-slope and renamed Michigan Bluff.[2] The Michigan City post office operated from 1854 to 1943.[2]
The town was founded by gold miners. Mining began in earnest in 1853, and town was shipping $100,000 in gold per month by 1858. Leland Stanford ran a store in the town from 1853 to 1855. After hydraulic mining was banned, the town entered decline.[3] The town is now registered as California Historical Landmark #402.[4]