The Northern Pine Crating Co. opened a wooden box factory in the autumn of 1907, operating until the mill burned c.1950.

Tourism has been an increasingly important component of the local economy since the earliest days of the community.

Numerous resorts and campgrounds in the area cater to sport fishing, hunting, camping, and watersports.

The Federal Government has been an important local employer since 1902, when the Minnesota Forest Reserve was established.

Following passage of the Emergency Conservation Work Act of 1933 and establishment of the Civilian Conservation Corps, Cass Lake was the headquarters for the Chippewa Sub-District, responsible for management of over a dozen camps.

Among the CCC projects completed in Cass Lake were the monumental log-construction Forest Supervisor's Office (1936) and establishment of the Lydick Nursery (1934), which produced millions of seedlings for reforestation work.

In 1922, the Bureau of Indian Affairs established the Consolidated Chippewa Agency to serve all the Ojibwe tribes in Minnesota, with the exception of Red Lake.

Following passage of the Indian Reorganization Act of 1934 and establishment of the Minnesota Chippewa Tribe, tribal headquarters were located in Cass Lake.

The area was inhabited for thousands of years by succeeding cultures of indigenous peoples.

In historic times, the Ojibwe/Chippewa moved west and south from the Great Lakes region, settling across present-day Minnesota.

The post office was originally established as 'Tuller' in December 1898, named after the brother-in-law of the first postmaster.

When this was known, residents quickly lodged protests with the Postmaster General and by the end of March 1899, it was renamed 'Cass Lake'.

The forest industry has historically supplied many jobs, but has been susceptible to boom-and-bust cycle.

Between 1898 and 1923, the city was dependent on lumber mills utilizing pine from the surrounding forests.

From 1983 until 2009, Potlatch Corporation and its successor Ainsworth operated an oriented strand board plant in nearby Farden Township, which provided employment to many residents.

The former wood-treating plant operated by Wheeler Lumber within the city limits has been designated a Federal Superfund site, due to soil and groundwater contamination by the wood treating compounds creosote, pentachlorophenol, and ammoniacal copper arsenate.

[8] According to the United States Census Bureau, the city has a total area of 1.09 square miles (2.8 km2), all of it land.