Beginning in the 1880s Black Diamond was a rural coal mining area, developed by the Black Diamond Coal Mining Company of California, which owned and operated the mine. The original residents were largely composed of former workers, from the company's previous coal mining operation in Nortonville, California, which primarily sold coal to the thriving new metropolis of San Francisco. A combination of low quality coal from the Nortonville mines, water intrusion into the workings there, and the discovery and economical transport of higher-quality Washington coal to San Francisco spelled the demise of Nortonville in the early 1880s. The town was home to around 3,500 people by the early 1900s, many of them European immigrants; most of the working men were involved in producing coal. This coal was transported to Seattle via the Pacific Coast Coal train. Before 1911, the miners were affiliated with the United Mine Workers of America (UMWA), but by March 1911 had left en masse to join the Industrial Workers of the World (IWW).