This small community is located in Klamath County east of Klamath Falls, between Bly and Malin at the Hwy 70 and Casebeer Rd. intersection. Bonanza is also situated just east of Alkali Lake, along the banks of the Lost River.
The Town of Bonanza was developed at an old Modoc Indian site. The area's Indian name of "Nushaltkaga" refers to the many springs which characterize the area. This area has furnished many settlers with excellent farm and range land, wood for their homes and businesses, and an excellent climate. The town was founded by J.P. Roberts in 1876, and platted by Benjamin Price in 1878. The town was incorporated in 1901.
Today, Bonanza is a stable farming and ranching community of 420 people. Although the town has been repeatedly plagued by disastrous fires, it has been rebuilt and now has several fine businesses and facilities.