The area was seriously affected by the April 18, 1906, earthquake, largely because the San Andreas Fault passes through the mountains. There were numerous offsets and fissures, resulting in damage to the rails, bridges, and tunnels. Homes and businesses were damaged or destroyed as well. The railroad recovered from the disaster and operated until heavy rains in February 1940 caused major landslides; the Southern Pacific decided not to repair the damage. Completion of State Route 17, west of Laurel, that same year also contributed to the demise of the railroad and several small communities, including Laurel, that were located along the railroad right-of-way. Since then, some homes have been built around the site of Laurel, but the village itself no longer exists. Laurel Drive passes through the village's site.