Anakie’s history took a dramatic turn in 1875 when Government Surveyor Archibald John Richardson stumbled upon zircon crystals while surveying near Retreat Creek. Initially dismissed as rubies, these stones sparked little interest.

However, just a year later, John Evans, a prospector scouring the region, uncovered sapphires in the gully near Freehold. This discovery would set the stage for a mining boom that would define Anakie’s future.

As news of the sapphires spread, fortune seekers and prospectors began arriving, setting up rudimentary mining camps along the creeks. Unlike the gold rushes that gripped much of Australia, sapphire mining required patience and persistence. Miners toiled through layers of gravel, using sieves and shovels to extract the precious stones from the earth.

By 1892, sapphire mining had become a well-established industry in the region. During 1892-93, sapphires valued at £9,000 ($18,000) were produced, highlighting the increasing economic significance of the industry.

Government Geologist Robert Logan Jack reported on the sapphire, gold, and silver mines near Anakie, detailing the mining efforts at Retreat Creek and Keilambete.

His observations highlighted the presence of large quantities of sapphire-bearing material, with miners such as Messrs Richardson and Fisher unearthing significant gemstones.

Despite the promise of riches, the industry faced significant challenges. In 1893, Mr. Morey wrote in his report, 'I regret that I cannot send a favourable report on the sapphire workings... A very large quantity of gems, amounting to several hundreds of thousands of carats, have been raised together, but no market can be found for them. Population... workers at the sapphire claims - 18. Prospects... very doubtful.'

The 1880s and 1890s saw Anakie transform into a bustling community. The settlement had a mix of miners, merchants, and railway workers, all working tirelessly to carve out a livelihood.

Names like A. Brown, L. Lighton, and Henry Neggett appear in early records as key residents who helped establish Anakie’s first businesses and infrastructure.

Life in Anakie was far from easy. The miners endured harsh conditions, with searing heat in the summer and chilling winds in the winter.

Housing was rudimentary, often consisting of tents or timber huts. The isolation of the region meant supplies were scarce, and the reliance on railway deliveries made the town vulnerable to economic fluctuations. Yet, despite these challenges, the people of Anakie persevered.

One of the defining characteristics of Anakie’s early days was its strong community spirit.

Social events, particularly dances in the public hall, became a cherished escape from the daily grind. Sports competitions and market days brought people together, forging bonds that would sustain the town through hardships.

In 1893, the sapphire fields saw their first German buyer, W. Gottlieb, marking the beginning of international interest in Anakie’s gems.

That same year, Lala Richardson married her father’s partner, Frank Fisher, a union that further cemented business and social ties within the mining community.

By 1895, the town faced another crisis as an outbreak of fever swept through the mining camp, tragically claiming the life of one of its respected residents, Mr. J. Flynn.
The difficult conditions underscored the resilience of Anakie's community in the face of adversity.

By the turn of the 20th century, Anakie had firmly established itself as a major player in the sapphire industry.

Miners continued to pour in, seeking their fortunes in the gem-rich soils. The introduction of better tools and more efficient extraction methods allowed for larger-scale mining operations.

The town’s postal records from 1885 to 1901 reflect its steady growth, with an increasing number of families and businesses receiving mail.

Notably, the German immigrant community played a crucial role in Anakie’s development, bringing European mining techniques that enhanced sapphire extraction efficiency.

Despite its growth, Anakie’s reliance on sapphire mining meant its economy remained fragile.

Booms and busts followed market fluctuations, leading to periods of prosperity followed by sharp declines.
Yet, the town endured, adapting to each challenge with characteristic resilience.