Present Blue Lake comprises "old" Blue Lake, Powersville, and Scottsville. In 1854, Augusta Bates settled in the Scottsville area and sold to Brice M. Stokes in 1862. In 1861, the 13-acre Blue Lake was formed from flooding of the north fork of Mad River, and it gave the town a resort atmosphere. As the river changed course in the 1920s, the lake disappeared to become what today is a small pond on private property. In 1866, William Scott purchased land from Brice M. Stokes and established "Scott's Farm," later becoming Scottsville. Powersville was established in 1869 by David Powers on land originally claimed by Augusta Bates, Brice M. Stokes and William Scott. In 1876 a post office opened, named "Mad River." The post office named Blue Lake was established in 1878. The town of Blue Lake was
incorporated on April 11, 1910. ==Demographics==