In January 1893, prospectors Patrick (Paddy) Hannan, Tom Flanagan, and Dan O'Shea were travelling to Mount Youle when one of their horses cast a shoe. During the halt in their journey, the men noticed signs of gold in the area, and decided to stay put. On 17 June 1893, Hannan filed a Reward Claim, leading to hundreds of men swarming to the area in search of gold and Kalgoorlie, originally called Hannan's, was born.
The population of the town was 2,018 (1516 males and 502 females) in 1898.
The mining of gold, along with other metals such as nickel, has been a major industry in Kalgoorlie ever since, and today employs about one-quarter of Kalgoorlie's workforce and generates a significant proportion of its income. The concentrated area of large gold mines surrounding the original Hannan find is often referred to as the Golden Mile, and is considered by some to be the richest square mile of earth on the planet. The town's population was about 30,000 people in 1903 and began to grow into nearby Boulder.
The narrow gauge Government railway line reached Kalgoorlie in 1896, and the main named railway service from Perth was the overnight sleeper train The Westland which ran until the 1970s. In 1917, a standard gauge railway line was completed, connecting Kalgoorlie to the city of Port Augusta, South Australia across 2,000 kilometres (1,243 mi) of desert, and consequently the rest of the eastern states. The standardisation of the railway connecting Perth (which changed route from the narrow gauge route) in 1968 completed the Sydney-Perth railway, making it possible for rail travel from Perth to Sydney�and the Indian Pacific rail service commenced soon after. During the 1890s, the Goldfields area boomed as a whole, with an area population exceeding 200,000, mainly prospectors. The area gained a notorious reputation for being a wild west with bandits and prostitutes. This rapid increase in population and claims of neglect by the state government in Perth
