Much of the present Day Use Area, back in the 1880 s was the homestead of James Fordyce. His neighbor, William T. Eaton, claimed the adjoining 160 acres. This became the town site for Silver Falls City, recorded on March 16, 1888. Arnold and Watson erected the first water-powered sawmill on the bank of Silver Creek just south of the county road crossing. In this way, they could get a straight-grained cut and avoid the thick butt of the tree.
Springboard notches are still visible on some of the large cedar stumps in the park.
Ox teams hauled the lumber out of the woods on skid roads. When the dirt roads were reasonably dry, a four horse team with two wagons would take the lumber to Salem, taking two days for the round trip. Silver Creek was a favorite recreation spot for Marion County people for more than fifty years before the first land was deeded to the state for a park. In summer and fall when the roads were finally free of mud, hundreds of people traveled by foot and by horseback to Silver Falls, sometimes using the mill teams to haul their gear. Many of the citizens of Marion County can tell you of their Silver Creek trips, long before the comforts of paved roads and cars.