After the Northern Pacific Railroad came through Dover in 1883, the timber industry soon set up shop in 1907. The town, platted in 1908, enjoyed a long history of lumber operations, from the Dover Lumber Company, to the A.C. White Lumber Mill, to the Dover Mill owned by Pack River Management and others until it closed in 1989.
Now the old mill lumber site is home to Dover Bay Resort and Marina within the boundaries of Dover Bay.
Dover Bay got under way in 2003 and has transformed the old lumber mill site, with 285 acres and over a mile of shoreline, into a major development with a 274-slip marina, hundreds of homesites, condos, bungalows for vacation rental, common open space, boardwalk, a waterfront village area with a café, market and fitness center. Dover Bay is also involved in many community events.