The town is also served by a public swimming pool and over the years has developed into the commercial hub of the mid-mountains area, which spans from Linden to Bullaburra, boasting a significant industrialized area as well as a shopping centre located on the south-eastern side of the highway.

One of the first settlements on the eastern slopes of the Blue Mountains, Lawson was identified on early maps as 24 Mile Hollow–a name which was changed to Christmas Swamp for a few years.

[2] In 1931, the Railway Department agreed to supply electricity to the Blue Mountains Shire Council.

In more recent years, Lawson was at the centre of controversy due to an ongoing government proposal to widen the Great Western Highway.

The highway was a single lane in each direction through the town; the proposed plan by the Roads & Traffic Authority for widening necessitated the removal and relocation of the existing shops and the demolition of the Lawson Community Centre, formerly known as the Mechanics' Institute Hall, which dated back to 1903.