In 1889, it was established as a private park by D. C. Corbin, a railroad builder and banker. In 1897, it was sold to Evan Morgan, who made it a public recreation center. The name is borrowed from Loon Lake, on which the town is located.
The tour skirts Loon Lake, warm and clear and shallow along its sandy shores; it is about a mile long and one-half mile wide, with wooded hills on the west down to the water’s edge.
In July 1881, the lake was named by John U. Hofstetter, a Colville valley pioneer, because it was a favored nesting place for loons.