Work slowed in 1939, when the Navy began building a base on Japonski Island and outside jobs became available. Even so, a post office under the name "Pelican" was established on November 27, 1939 with Bob DeArmond as first postmaster. Pelican's school opened with Arvo Wahto, of Douglas, becoming its first teacher. He would teach two generations of children before retiring in the 60's. A sawmill was built and put into operation producing the lumber to build homes adding to the permanence of the town.