The square's retail and business dominance started declining in the latter half of the 20th century. Urban renewal policies during the 1960s and 1970s resulted in the demolition of some of the square's historic structures. Declining industry hurt Watertown's once prospering economy. Although nearby the Fort Drum military reservation expanded in the 1980s and brought growth to the Watertown, modern shopping malls and retail chains built on the city's west side drew business away from the square. Public Square's days as the city's main retail destination were at an end. The square continued its slow decline over the next 20 years.