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Dayton is a census-designated place (CDP) in Lyon County, Nevada, United States. The population was 8,964 at the 2010 census. The micronation of Molossia is located in Dayton. Dayton is at the western end of the Twenty-Six Mile Desert at a bend in the Carson River. Immigrants stopping there for water would decide whether to follow the river south or continue west, giving the location its first name, Ponderers Rest. In 1849, Abner Blackburn, while heading for California, discovered a gold nugget in By 1850, placer miners settled at the mouth of Gold Cañon, working sand bars deposited over the millennia along the path of the creek. At first the settlement was just called Gold Cañon or Gold Cañon Flat. Throughout the 1850s, Dayton served as the commercial hub for miners working in the canyon. In 1857 many Chinese miners came to the area to avoid mining taxes directed at the Chinese in California. With the 1859 discovery of the Comstock Lode, newly founded Gold Hill and Virginia City, six miles to the north, assumed prominence and most miners headed up the cañon. By 1860 the town was primarily occupied by Chinese miners and it was called "China Town" in the U.S. census of that year. However, soon people began to realize there was more profit in providing milling, goods, and services to the miners and thus came or returned to the area. nearby Gold Creek, one of the tributaries of the Carson River.