The construction of dams at the Lake of the Woods outlets in present-day Kenora in the late 19th century led to concerns over high and low water levels on the lake early in the 20th century. The federal governments of Canada and the United States referred the matter to the
International Joint Commission (IJC) in 1912. In 1917 the IJC recommended the creation of control boards and the operating conditions they would apply to lake level management. The first of these boards, the Lake of the Woods Control Board (LWCB), was established by Canadian Order-in-Council in 1919. Two additional acts provided statutory establishment of the LWCB, defined its jurisdiction and powers, and provided for board members appointed by Canada and Ontario: the
Lake of the Woods Control Board Act, Canada, 1921, the
Lake of the Woods Control Board Act, Ontario, 1922. In 1922, the Canada-Ontario-Manitoba Tripartite Agreement was signed by the respective governments. Initially, only Canada and Ontario appointed members to the board as, at that time, natural resources in Manitoba were administered by Canada. In 1958, having gained control over its natural resources, Manitoba passed its own
Lake of the Woods Control Board Act. That same year, Canada and Ontario amended their original versions of the acts. As a result of these legislative changes, the LWCB now has one member appointed by Canada, two appointed by Ontario, and one appointed by Manitoba. Following the IJC recommendations of 1917, discussions between the federal governments of Canada and the United States resulted in the 1925 Canada/USA Convention and Protocol regarding Lake of the Woods. This treaty established the water level operating range on Lake of the Woods, defined the purpose and general mode of operation, and provided for two boards to control regulation. The previously established Canadian LWCB was to regulate the lake on an ongoing basis, but its decisions were to be subject to approval by an International Lake of the Woods Control Board (ILWCB) whenever lake levels rose above or fell below certain limits. In cases where agreement could not be reached between Canadian and American members of the international board, the disputed matter would be referred to the IJC for the final decision. The International Lake of the Woods Control Board, however, is not a board created by the IJC. The board's members (one American and one Canadian) are appointed by the respective federal governments.
Shoal Lake is adjacent to the Lake of the Woods and is the source for the City of
Winnipeg drinking water via the
Greater Winnipeg Water District Aqueduct, so the administration of the lake is of continuing interest to the governments of Winnipeg and Manitoba. ==Communities near Lake of the Woods==