Seat of Grays Harbor County and one of the oldest cities in the region, this town lies at the confluence of the sluggish Wynooche (Ind. “shifting sands”) and Chehalis rivers. First settlement was made on the south bank of the Chehalis, almost opposite the mouth of the Wynooche, by Isaiah Scammon, who had come from Maine. His journey to this corner of the country is illustrative of the difficulties that beset travelers in his day. He came around the Horn to San Francisco and thence to Astoria by boat; crossed the Columbia River to Ilwaco near Fort Canby, then went by stage to what was known as Peterson’s Point (now Westport). From there, he crossed Grays Harbor and went upstream to the present site of Montesano. The settlement was known for a long time as Scammon’s; later, as Wynooche.
Chehalis County was created April 14, 1854, and the home of D. K. Welden named county seat. Virtually at the head of navigation on the Chehalis River, the settlement made up a popular subscription and built the steamer Enterprise in 1859 to run between Satsop and Grays Harbor. On February 9, 1860, the Enterprise, loaded with troops of Company A, Fourth Infantry, under the command of Captain M. Maloney, stopped at the harbor mouth to establish a fort at Point Chehalis (Westport).
In 1860, the county seat was removed to the J. L. Scammon place. The name Montesano, which by then had been given to the settlement, derived from monte (Spanish, “mountain”) and sano (Spanish, “health”), was probably suggested by the large hill back of the town (now usually known as Boy Scout Knob).
Settlers came in increasing numbers, but many of the newcomers crossed to the north side of the Chehalis and began a second settlement. The new site was bought up in 1870 by C. N. Byles, of Elma. A town was platted and given the name of the old settlement, which then became known as South Montesano. The new Montesano prospered during the 1870s and 1880s. The first store was established by John Esmond in 1872. The Arland brothers set up a hand-shingle mill in 1881 and received as much as $200 per thousand feet for products shipped to San Francisco. In 1881 Squire Zenor put up the first hotel.
Joseph E. Calder and James W. Walsh founded the Montesano Vidette (meaning “outpost”), later becoming Chehalis Valley Chronicle, in February 1883. When the two young men heard that the government was going to require filers on timber claims to advertise notice of application and notice of final proof, they hastily moved to Montesano, with a $400 roller press and eight fonts of type. In 1883, the Vidette had a circulation of 480 and most of the revenue came from publishing timber claim legal descriptions. Although it was only a four-page affair, with the front and back printed in Portland from stock forms, the two editor-printers experienced many difficulties. It is unclear when the newspaper changed its name to the Chronicle, but it was changed back to the Vidette and sold in 2002 to Stephens Media Group, which also owns the Aberdeen Daily World.
When Calder retired after ten months, his profits had reached 2,400 percent. More than anything else, this indicated the number of timber claims being taken in the region, particularly up the Wynooche River. Mills were springing up all along the Chehalis River also; and in the early 1880s a mill was built on Lake Sylvia, just in the back of the townsite. Montesano turned on its first electric lights in October 1889, approximately a month before the Northern Pacific Railroad stopped its first train at the boxcar station.
Schaefer Brothers operated a shingle mill employing 90 men; their sawmill here burned in 1931, cutting off the largest industrial pay roll in this community.
Lumber is still the main industry in town. Just south of the main business area is the Marys River Lumber Company plant near the site of the old Schaefer Mill.