The community's founding dates back to the fur trade era. With the arrival of the Canadian Pacific Railway in 1881 as part of its transcontinental expansion, the community's growth was closely tied to the tourism industry. The railway provided a means of transporting vacationers to the area (primarily to visit Lake of the Woods), leading to the construction of several vacation accommodations, including those by the Canadian Pacific itself. Kenora also served as a division station with a locomotive house (rebuilt in various locations over time), water and coal facilities, and a large railroad yard. Close to extensive forested areas, the timber industry built several factories in and around the area, including a paper mill (see map for details). Mining (gold and other precious metals) also played a role in the community's economy, as did a flour mill.
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