In the mid-1870s lumber Baron John Knapp was the first to purchase a homestead claim on the island. In 1887 Frank D. Stout and Thomas Wilson Jr purchased the island as a 'Man Cave' for hunting and fishing with friends. Mr. Stout bought the 18-acre island outright for $14,000 in 1903. The hunting lodge indulgences lasted only until the women in his family learned of the island's striking beauty.

The main lodge was built in 1912, using specially ordered Cedar Logs as well as California Redwoods, stones imported from Italy, and German Black Forest carved beams. The main island is connected to the east island by a steel bridge gifted by Andrew Carnegie.

The Stout family came to call it "The Island of Happy Days".