The town was destroyed by fire in 1877, at which time it had a population of about 500, most of whom were somehow involved in supporting the operations of the furnace or the local aspects of Michigan's early iron industry. It was a dry season and the woods around Onota had been burning for several days. On May 31, a strong wind from the south drove the flames into the village and ruined it in a matter of hours. The village was not rebuilt and only ruins of the furnace kiln remained, and were later partially reconstructed on the original location. In 1948, the Cleveland-Cliffs Iron Company gave to the U.S. Forest Service for historical and recreational use. Surrounding buildings destroyed by the fire included the casting shed, charging house, machine shop, blacksmith shop, and storage sheds.