Hill City has its roots in the Black Hills mining rush of the late 19th century. Tin mining was dominant in the 1880s and led to an influx of capital and people into the area. As the mining industry subsequently waned, tourism and timber became increasingly important to the area. With the establishment of Mount Rushmore in the 1940s, Custer State Park, and the Sturgis Motorcycle Rally, the Black Hills became known as a tourist destination which Hill City benefited from. In recent years the city has diversified to become a center for the arts in the area featuring several art studios and festivals.