In 1934, Klawock received federal funds under the Wheeler Howard Act to develop a local cannery, on the condition that residents vote to be liquor-free. In 1971 the Alaska Timber Corp. build a sawmill. The State constructed a salmon hatchery in 1978. Culture Klawock is a mixed Tlingit and non-Native city. The Island has been greatly influenced by logging operations.
Most residents pursue a subsistence lifestyle to provide food sources.
The community takes great pride in its Totem Park, which displays 21 restored totem poles and replicas from the old village. The Totem Park includes a Heritage Center and Long House. Sale of alcohol is restricted to the City-owned package store. The economy has been dependent on fishing and cannery operations in the past, however the timber industry has become increasingly important in recent years. The Klawock Timber Co. sawmill and area logging operations are the largest employers.