Marlette Water Systems: Marlette Lake - Hardcoverby Julie Michler (Author) About the Marlette Water Systems. Water was stored in wooden tanks and sent through pipes into the towns. Virginia City had become America's greatest producer of high grade silver and gold ore. On May 12, 1862 the water companies combined to form the Virginia and Gold Hill Water Company. In the early 1870's the Virginia and Gold Hill Water Company realized they needed more water to supply the cities domestic and mining needs