Granite Bay's roots lead back to the early 1850's, when gold miners first settled the banks of the American River. There were 37 gold mining settlements along both sides of the River.
In its earliest beginnings, it was known as "Granite Bar", a small mining camp just below Horseshoe Bar. The North Fork Ditch, built by the Natoma Company between 1852 and 1954, not only allowed miners to surface mine gold, it continued to supply water to the area and attracted settlers who planted olive and almond orchards.
What was is now called Auburn-Folsom Road was originally called Auburn-Sacramento Road. The road was built in 1850 to allow miners to travel back and forth with supplies. Whiskey Bar, Horseshoe Bar, and Rattlesnake Bar Roads were all established to connect the various settlements to the bar or to the main road. Granite Bar, later to be known as Granite Bay was named for the granite rock quarried from its banks and used as rip-rap in the wing dams of Folsom Dam.