A pioneer wagon road came through this area and went to Fort Apache, established in 1870. Hay, which was delivered to the fort, was one of the few cash crops in those early days. The road is now covered by Rainbow Lake.
Early sheepmen first used this country for grazing their flocks until the financial crisis of 1905, which made sheep practically worthless. This, along with the drought that followed, forced the sheepmen to sell out to the Mormons.
In 1905 Niels Hansen purchased property and Adair Spring from Will Amos. Lakeside was settled near the spring, the source of water, in 1906. The first postmaster was John Lazelle Fish. In the fall of 1906, the first school was held in Niels Hansen's home and bunkhouse, later in the Rhoton Store.
On June 24, 1912, Lakeside Ward of The Church of Jesus Christ of Latter-day Saints was organized with Alof Pratt Larson as Bishop.
Lumbering, with its accompanying five sawmills, was important to the economic life of this town.