In 1862 a waterwheel powered sawmill was opened in Chemainus, an ideal location with a sheltered bay for log booming and shipping of lumber products by sea and later by rail. By the late 1970s the mill was antiquated and the forestry industry was suffering exceptionally difficult times, and In 1983, after more than 120 years of operation, the Horseshoe Bay lumber mill shut down for good.
While the mill is gone, Western Forest Products mills in the area still utilize the harbour for the shipping of lumber.
