Prior to that, Shawnigan Lake was largely unsettled and the only supplies were delivered by a weekly steamship to Cowichan Bay.

Shawnigan Lake's forestry industry closed in the mid-twentieth century due to both the loss of the mill, which was destroyed by fire (for the third time) and decreased demand.

The main railway, no longer active as of 2011[update], served the community twice daily (once northbound, and once southbound) and was a passenger-only train service operated by Via Rail Canada.

[3] Shawnigan Lake is located approximately 48 km (30 mi) north of Victoria, and borders the communities of Cobble Hill and Mill Bay.

The south end of the lake is largely undeveloped, discounting the lakeshore itself, with scattered farmland and numerous hiking trails.

Residents of Shawnigan Lake also have access to nearby communities such as Mill Bay and Langford and Duncan that offer more shopping, employment, and educational opportunities.

Elsie Miles Elementary, located within the village proper, was closed in mid-2006 due to age and declining enrollment.

[4] The west end of Shawnigan Lake sits on an abandoned CN Rail line that was torn up in the 1980s.