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A cyclist views Folsom Dam from a hilltop exposed due to the low water levels in Folsom Lake on Monday, December 29, 2013. A short twenty minute walk the remains of the old gold rush town, Mormon Island can be seen. It hasn't been seen since 1955 when the area was flooded for Folsom Dam. Some foundations and relics can be seen on the ground, but most of the town is still underwater. the island town, which is usually under Folsom Lake, grew out of a larger Mormon settlement on the American River during the Gold Rush. It used to be a town of about 2,500 people. "Mormon Island thrived during mining years with as many as 2,500 people, complete with four hotels, a school and seven saloons, according to some historical accounts.