During the late 19th century, the area around Oak Lake was a popular stopping point for fur traders and settlers due to the large number of big oak trees (revered for their strength) located around the lake that could be used to repair their wagons.
In the fall of 1881, work crews on the transcontinental Canadian Pacific Railway had reached Flat Creek to the east of the current townsite. In the spring they moved the camp west and built a siding and station (now long gone) where the community's flags and flower garden are now located. Settlement in 1882 lead to the town's incorporation in 1907.
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