In 1862 the sailor William Fox discovered gold in the Arrow River. By the end of that year over 1,500 miners were camped along the river and a small canvas town had grown up at the junction of 12 Mile Creek and the Arrow River. Amongst those that flocked to the area were three brothers: John, Charles and Harry Mace, after whom the town came to be known. In 1863 the population was around 300. At its height the town boasted a school, a church and two hotels.