Today Lake Arrowhead is not only a popular recreational area for visitors, it is also a beautiful year round alpine residential community at an elevation of 5100 feet. Lake Arrowhead residents experience four distinct seasons in a peaceful, rural community within a forest of soaring Cedar, Oak, Pine and Dogwood trees. Lake Arrowhead is a wonderful mountain community located in the center of the San Bernardino National Forest. Lake Arrowhead is made up of 9,215 acres of forest and is located only 1 ½ hours from Los Angeles and Orange County. Surprisingly, the village that stands today is not the original village that was erected between 1921 and 1923, the original Norman styled village which included a dance pavilion, an outdoor movie theater, restaurant, beach and bath houses. On April of 1979, a "Burn to Learn" exercise was conducted by the Lake Arrowhead Fire Protection District, with the San Bernardino County fire departments and Air Corps taking part. All structures in the Village were burned down except the original dance pavilion building, the post office, bank and real estate office. 
The beautiful new Village was built in much the same architecture as the old Village, and the dance pavilion was restored ad the theme building, which now houses boutiques. The Village includes a complete convenience shopping center, restaurants, boutiques, gift shops, specialty shops, factory outlets and lake tours on a 60-seat capacity paddlewheel.
The spectacular Arrowhead Hilton Lodge, now the Lake Arrowhead Resort, was built on the site of the original Arlington Lodge and opened in November of 1982. In 1826, the first white man to set foot in Little Bear Valley (now know as Lake Arrowhead) was a fur trader, who was a partner of Jedediah Smith. At that time, about 40 Paiute Indians, a war tribe from the high desert area, used the mountains for their hunting grounds. Later in the 1860's, the main attraction at Little Bear Valley was logging, lumber and cattle, and there were several saw mills in and around the valley.
The first so-called "Mormon-Road" up the mountain was built in 1852. The "Daley Canyon Road" was built in 1870. Summers were productive in the Valley, but everything stopped in the winter. A few families remained during the winter months and their only diversion was to snowshoe to their neighbors (usually miles away) to visit. In 1891, Three Ohio businessmen chose Little Bear Valley as a likely spot for a reservoir, to supply water to the southern lowlands. Land was purchased and water rights were obtained. The Arrowhead Reservoir Company was formed.
In 1890, a tramway, (a cable powered device) was built from Waterman Canyon up the mountain for the purpose of transporting supplies for the building of the dam. However, engineering problems rendered it unsuccessful. Consequently, supplies and machinery were transported via the switch-back-road.
Construction of the dam for the reservoir started in 1893. Camp I on the north slope of the valley served as living quarters and mess hall for the workers. In 1905, the property was transferred to a new corporation, Arrowhead Reservoir and Power Company, because the idea of utilizing the water for power had been conceived. By 1912, the dam was 80% complete, and work continued for several years after that. The plans called for over 60 miles of water conveyances and tunnels. However, only 6 1/2 miles were completed, when it became know that the state ruled in favor of the ranchers on the upper desert side of the northward facing watershed, and passed laws which prevented the diverting of water from its natural watersheds for other than domestic use. Thus the company was stopped from continuing with its plan to transport water to the areas south of the mountains, and even though the lake was filling with water, the project was abandoned.
The Arrowhead Lake Company, a Los Angeles syndicate, bought Little Bear Valley and the surrounding land (deriving the name from the vegetation in the form of an arrowhead on the face of the San Bernardino Mountain, near Arrowhead Hot Springs, which is rooted in Indian legend.)
The Arrowhead Lake Company's plan was to develop the mile high man-made lake into a fine recreation and residential area. Between 1921 and 1923, the dam was completed (31 feet higher than originally planned) and a road was constructed partially around the north shoe of the lake was completed. Three hotels were built: the Arlington Lodge, Village Inn, and North Shore Tavern.
A 9-hole golf course was built on the site of the present golf course. Some of the lakeside land was subdivided and sold for private homes and secluded north shore estates. Many Hollywood stars stayed at hotels during the era, and some purchased homes in the resort. The studios frequently used the area for making films. A domestic water system, pumping water from deep in the lake, supplied water to homes and structures.
Strict conditions affecting the use of land and building in Arrowhead Woods were recorded with each tract, including the removal of trees. During the World War II years, Lake Arrowhead Village was a popular retreat for service men.
In 1946, the Los Angeles Turf Club (owners of San Anita Race Track) purchased the and surrounding properties, known as Arrowhead Woods. Several million dollars were spent by the Turf Club, within the first few years of their ownership, improving the properties. No lots to speak of were sold during the Turf Club ownership. However, they made several donations of land to various organizations, such as the Boy Scouts, Girl Scouts, San Bernardino County, churches, and Sister of St. Joseph of Orange, (the builders of the hospital). They also donated $50,000 for the construction of the hospital. The famous North Shore Tavern was donated to the University of California and is now a popular conference center. In 1960, three businessmen / developers from Los Angeles bought Lake Arrowhead and formed the Lake Arrowhead Development Company. They built the present 18-hole golf course. Eighteen residential tracts were subdivided, also with strict deed restrictions, and an additional 120 acres of land were purchased and included in Arrowhead Woods. A water filtration plant was built to filter domestic water supplied to the Arrowhead Woods residents.
In 1967, Lake Arrowhead Development Company merged with Boise Cascade Corporation, of Boise, Idaho. Boise continued the subdivision of properties and developed five additional residential tracts. In 1971, Lake Arrowhead was purchased by seven businessmen from Chicago.
In 1973, Boise Cascade was forced to reacquire Lake Arrowhead through foreclosure. At the time Boise reacquired the property, they were faced with the problem of building a new dam or lowering the lake 70 feet, due to a study required by the State of California. However, Boise felt that the building of a dam should be shared by all property owners in Arrowhead Woods, and legislation was passed to permit a bond issue to be voted on property owners to finance the building of a new dam downstream. A bond for seven million dollars was passed in 1974 and an earth fill dam was built. A small lake was formed between the two dams, named by a local resident, Papoose Lake.
The property owners in Arrowhead Woods bought Lake Arrowhead In October, 1975 from Boise, and Boise sold their remaining holdings in Lake Arrowhead to Metropolitan Advertising Agency in 1977. In 1978, a group pf investors, headed by developer, George Coult, bought the Village and Lodge properties.