Logging became the principal industry. Most of the homesteads were still covered with timber. What fields there were, were small and used to grow enough grain for animal feed and for household use. Homesteaders earned their money by cutting and selling their wood to various buyers.
Several large sawmills were established early on at both Baudette and Spooner. Timber was floated down the tributaries of the Rainy River to the mills or hauled to the various railroad depots for shipment via rail.
Commercial fishing continued to be a source of income for a number of families living along the shores of the lake and at the mouth of the Rainy River.