"Gold was discovered near Deer Lodge in 1862. Subsequent discoveries in Bannack and Virginia City prompted a gold rush that attracted men and women of both good and bad character. Thievery, lawlessness, and murder prevailed until vigilante groups organized and hung or banished many of the worst criminals. In the winter of 1866-67, the Territorial Legislature requested fun ds for a prison. The United States Congress quickly approved the request, but the funding was inadequate."

"Deer Lodge was picked for the site of the new Territorial Prison. Funding problems caused many delays and revisions in the plans, but construction finally began in the spring of 1870 and the first wing was completed by fall of the same year. The first convict was received on July 2, 1871. On November 8, 1889, Montana became the 41st state and the burden of operating this prison fell on the shoulders of the new state government. Inadequate funding and overcrowded conditions have plagued this facility for over 100 years. In 1979, this prison was abandoned in favor of a new facility, five miles west of Deer Lodge."

"Today the old prison is listed on the National Registry of Historic Places and is preserved and operated as a museum by the Powell County Museum and Arts Foundation under a lease agreement with the State of Montana."