The area was originally
homesteaded in the late 1860s by Michael F. Luark, who built Grays Harbor County's first water-powered sawmill there in 1871. The present dam was built around 1909; its
penstock (now mostly demolished) provided the power for a
generator house alongside the creek, down below. The generator and lake provided power and water for Montesano into the early 1930s, when the powerhouse was dismantled. Elsie Wilder was almost certainly the only woman in the United States to operate a power plant in the 1920s. In 1931, the
City of Montesano purchased the surrounding watershed for $12,000 () to safeguard its primary water source. The property was
deeded to Washington State Parks in 1936. ==Ecology and environment==