After crossing the Chukuni River, the highway travels near the eastern shores of Red Lake as it provides access to waterfront properties.

The highway curves northwest to pass between the Red Lake Golf Course and the western edge of Balmertown; Dickenson Road and Mine Road provide access into the mining town from the highway.

While the Department of Highways (DHO) committed to building a road to connect Red Lake with Balmertown, Cochenour, and the ferry to McKenzie Island in August 1947,[7][8] repairs to highways elsewhere in the province delayed the onset of construction until the spring of 1949.

In 1957, the route was extended 1.1 km (0.68 mi) northwest to the Ferry docks to McKenzie Island in Cochenour.

[3] The following table lists the major junctions along Highway 125, as noted by the Ministry of Transportation of Ontario.