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Originally a settlement called South Butte, established in the vicinity of the stage station at Butte House east of the current town. It had a post office from August 7, 1871 until December 17, 1878 and from February 18, 1879 to January 20, 1888 when it was moved to the new Sutter City Post Office nearby. The Sutter Cemetery originally South Butte Cemetery, lay to the west on the stage road, and beside it was the school house, that was dismissed when there was a funeral. Sutter City was the result of an attempt to take advantage of the boom in California in the late 1880s. The town was located south of the Cemetery along the path of a railroad line projected to pass through the town and it hoped to become the new county seat, because it was near the geographical center of the county.