Several entrepreneurs built saw mills between 1846 and 1852, but all were destroyed by fire. The paper mill was the first successful attempt to establish local industry.

Following the establishment of the LaCamas Colony Company a new wharf was built and there was steamboat service to Portland. The booming population created a greater demand for timber. The local sawmill was producing more than 30,000 feet of timber a day and was still unable to keep up with local construction demands.

Canadian immigrant Aeneas McMaster opened the first store in July 1883, which was quickly followed two hotels. By the next winter, LaCamas had three general stores, a meat market, a bakery and restaurant, a blacksmith, a livery and stable, and a brewery.

In 1906 the town of Camas was officially incorporated. The U.S. Postal Service had officially dropped the La in LaCamas in 1894 because the name was too similar to the other Washington towns of LaCenter and LaConner, causing confusion in mail delivery. Lacamas continues to be used for the lake and creek by that name.