[2][3] In 1902, a series of forest fires devastated the local logging industry, but Lester continued to thrive as a company town for Northern Pacific Railway.

In July 1962, the King County Superior Court ruled in Tacoma's favor to temporarily keep locks on its Lester gates.

[7] In April 1978, the Scott camp at Lester, one of the last in King County, was closed; by March 1979, the population of the town had dropped to 22.

[8] The mothballing of the Stampede Pass rail line by Burlington Northern in 1984 led to further abandonment of Lester, with the city of Tacoma and United States Forest Service restricting access to residents and their guests.

For public safety and watershed security, the remaining buildings in Lester (consisting of the guard house, gas and oil shack, and warehouse) were demolished by Tacoma Water in 2017.