The first white man to visit what is now Hayden Lake was Father DeSmet while serving as a missionary to the Coeur d’Alene Indians.

[5][6] In the 1870s, the Lake Hayden area began attracting white settlers due to the surrounding fertile soils and rich timber resources.

Heyden planted the first orchard in the area and established his farm on the western shore of Lake Hayden.

[9] Part of John Hickey's land claim along Hayden Lake became Avondale Cottage, a resort built in 1903.

[11][12] The popularity of the resort was encouraged when the Spokane and Inland Empire Railroad extended a trolley line that connected the area with Coeur d’Alene.

[7][6] This also made the resort easily accessible to the booming city of Spokane, WA, it attracted thousands of visitors to the area.

In 1910, F. Lewis Clark, a Spokane millionaire, built on the shores of Lake Hayden what was at the time considered to be the largest and most expensive house in Idaho.

[13][5][6] Around the turn of the century, a schoolhouse began to be constructed on the shores of Lake Hayden, but was moved before its completion to make way for the Bozanta Tavern.

[8][6] James Monaghan established the first general store near Lake Hayden, located approximately a half mile east of Government Way along Honeysuckle Avenue.

[5] A post office was also established there for a couple of years before relocating, along with the store, closer to Bozanta Tavern.

[6] This area, which had a stop on the electric trolley line, was developed by the Granite Investment Company, of which James Mongahan was president.

The first fruit packing plant in the area was established in 1914 and the Seiter Cannery in Post Falls was located nearby.

[6][5][8] Government Way, the main road connecting the area with Coeur d’Alene, bypassed the shores of Lake Hayden by a mile and a half.

[15] A collection of businesses slowly developed at the intersection of Honeysuckle Avenue which connected the lake community with Government Way.

By the 1950s, Government Way was designated as Highway 95 and the community of businesses servicing travelers and locals was called Hayden Village.

[16] Sargent's Restaurant was able to move forward in procuring its first liquor license and the City of Hayden in Kootenai County was established.