When silver was first discovered on the Comstock, the flow of water from natural springs was adequate to supply the needs of the miners and small towns of Virginia City and Gold Hill, Nevada. As population increased, wells were dug for domestic needs, and the water in several mine tunnels was added to the available supply. As the mills and hoisting works multiplied, the demand for water for use in steam boilers became so great that it was impossible to supply it without creating a water shortage among the residents, now thousands in number. In this need, the Virginia City and Gold Hill Water Company was formed, being the first non-mining incorporation on the Comstock Lode.