Wilhelm Zippel was one of the first permanent settlers in the area. He moved to the area in 1887 and built a home on a peninsula near the entrance of Zippel Bay. Zippel and his family established a commercial fishing enterprise on the lake. A small fishing village also was established in the area and was thriving by 1909. The village included a post office, cold-storage building and homes for the fishermen. There is little evidence of the remains of the village besides foundations, debris and depressions in the land. Zippel Bay State Park was established in 1959 to provide public access to Lake of the Woods and provide recreational opportunities in the area. Construction of the park did not get underway until 1963 and was completed in 1967.