The main boomtown serving the miners at Confederate Gulch was Diamond City (). During its heyday, Diamond City was the county seat of Montana's Meagher County, though today the area is part of Broadwater County. While gold production was at its height, Diamond City roared along both night and day. In their frantic efforts to get at more gold, the miners built ditches and flumes that extended for miles, and employed high pressure hydraulic mining methods which washed down whole hillsides and ate up the gulch floor. The hydraulic mining process left huge spoil banks in the gulch and eventually consumed the original site of Diamond City, which had to be moved to a new location.