[2] There was a slight decline in economic activity shortly after World War I with J.R. Booth's construction of a rival town, Depot Harbour, on nearby Parry Island, but this setback was overcome through later developments in tourism and commerce, and the accidental destruction by fire of the entire town of Depot Harbour on August 14, 1945.

Fire suppression is of enhanced concern in and near Parry Sound due to this area's strong tendency toward drier weather coinciding with the period of highest sun, in June and July.

Much more unusual (for Dfb climates) is Parry Sound's average annual cycle of precipitation, and cloudiness vs. sunshine.

With its location on the eastern side of large bodies of water, where prevailing winds and weather come from the west (typical in the mid-latitude Northern Hemisphere), Parry Sound experiences an exceptionally strong lake effect.

From spring to mid-summer, this means lake waters are cooler than nearby land areas, resulting in diminished intensity of low pressure systems and less precipitation, but alternation of low clouds and fog (resulting from warmer air passing over snow-covered ground, frequent into May most years) with occasional sunshine, especially once the long winter's snow cover has melted (mostly May through July).

Such heavy winter-month precipitation and snowfall figures are virtually nonexistent in humid continental climates, which tend to exist away from large bodies of water.

Overall, Parry Sound experiences a typical humid continental, cool-summer climate type in terms of temperatures - but a highly unusual climate regime in precipitation and cloudiness; the year's driest months are generally from March through July, while its wettest months are from September to January, with autumnal lake effect producing cloudy skies and heavy rainfall from September into November, followed by extremely heavy snowfall in December and January.

[11][12][13] Canadian actor Don Harron's stage character Charlie Farquharson remains one of the town's most cherished personalities.

The eastern coast of Georgian Bay where Parry Sound is located is known as the "30,000 Islands" and is considered the world's largest freshwater archipelago.

It covers 347,000 hectares of shoreline ecosystem, and over 100 species of animals and plants that are at risk in Canada and Ontario, including unique reptiles and amphibians.

[16] There are several golf courses located in and near Parry Sound; ice hockey, fishing, cross-country skiing, and softball are also popular recreational sports in the area.

Cross-country skiing in the Parry Sound area is based out of Georgian Nordic Outdoor Activity Centre (GNOAC).

In addition, Via Rail's Canadian (Toronto – Vancouver) transcontinental passenger train serve Parry Sound railway stations twice a week both east- and westbound.

[19] The entrance to the station is a shack with lantern room from the historic Cape Robert Lighthouse formerly on Manitoulin Island[20] List of notable people associated with Parry Sound: