Tuolumne City is known for a history of logging operations. Remnants of logging railroads are still present in the area. In the 1970s, there was a plan to open a park which was centered on narrow gauge live steam equipment. It was to feature restored locomotives from the logging operation here.
The plan was led by Herbert Reichhold who envisioned transforming the town of Tuolumne into a “Railroad Theme Park”. To this end he began purchasing many properties in the town. However he lost his vision on the death of his wife and the plans never moved forward.
In recent years the Tuolumne Band of MiWuk Indians has contributed new growth in this hamlet with revenues from nearby Black Oak Casino, which is owned and operated by the tribe. A new medical clinic and a new library are a few recent improvements. Another addition has been the renovation of the Tuolumne City Memorial Museum on Carter St.