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Silver City is a near ghost town and a small residential community in Lyon County, Nevada, USA, near the Lyon/Carson border. The population as of the 2000 census was 170. The community was so named on account of silver deposits near the original town site. Settled in 1859, the population in 1861 was about 1,200, but began declining after the Virginia and Truckee Railroad was completed in 1869. Construction workers left the area, taking their business with them. Devil's Gate, just north of Silver City, marks the boundary line between Storey and Lyon counties, and was a notable natural landmark of the Nevada Territory. Through this narrow gorge, thousands of people passed on their way to the silver mines of the Comstock Lode. Nevada State Route 342 was constructed through here.