In 1955 the forest was to be logged and the land sold but strong local opposition resulted in an ordinance preserving the area as a city park.

[1] Water wells for the city of Olympia were first created in the area now comprising Watershed Park in the late 19th century.

Influential Western Washington businessman Henry Clay Heermans bought the entire waterworks in 1909, and sold it to the City of Olympia in 1917.

[3] Local environmental activist Margaret McKenny is recognized as the impetus for establishing the park as a protected place.

There are big leaf maple, douglas fir, red alder and incense cedar throughout the park, along with huckleberry, Oregon grape, licorice and sword ferns, and devil's club.