The establishment of Soweto is, like Johannesburg, linked directly to the discovery of Gold in 1885. Thousands of people from around the world and South Africa flocked to the new town to seek their fortunes or to offer their labour.

Within 4 years Johannesburg was the second largest city.
More than half the population was black, most living in multi racial shanty towns near the gold mines in the centre of the town. As the gold mining industry developed, so did the need for labour increase.
Migrant labour was started and most of these workers lived in mine compounds. However other workers had to find their own accommodation often in appalling conditions.

The first residents of what is now known as Soweto were located into the area called Klipspriut in 1905 following their relocation from “Coolietown” in the centre of Johannesburg as a result of an outbreak of bubonic plague. The Johannesburg City Council took the opportunity to establish racially segregated residential areas. Some residents were to be relocated to Alexandra township (near the present day Sandton). This group comprised black, Indian and coloured families and they received freehold title to their land (this was subsequently reversed by the Apartheid Government). Only black families were located into Klipspruit and the housing was on a rental basis. Klipspruit was subsequently renamed Pimville.

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