The lake was named for the extensive cranberry bogs that it once contained. In 1865, the state authorized the building of a dam on the east branch of the Oswegatchie that doubled the lake's surface area and killed thousands of trees, the stumps of which still remain in some areas. In 1902, the Rich Brothers Lumber Company purchased on the southwestern shore of Cranberry Lake, and constructed a lumber mill. Housing for the millworkers was built in part from lumber salvaged from the company's abandoned Pennsylvania lumber operation. There were up to 1500 workers at the Rich Bros. mill and associated industries.