In the 20th century, Rice Lake became a recreational destination in the area, for although it was filling in, it was one of the few lakes in southeast Minnesota. The Izaak Walton League owned on the north shore, and another fishing and hunting club owned other lakefront. In 1961, the newspaper editor in Claremont, Dana Hinckley, sparked strong local interest in creating a state park around Rice Lake. The idea was appealing for several factors. Owatonna had lost part of Kaplan Woods State Park to construction of Interstate 35, and the Owatonna swimming pool was crowded. Residents expected that the state would dredge Rice Lake to improve boating and swimming. With such support, legislation creating Rice Lake State Park passed in 1963. That same year the shrunken Kaplan Woods State Park was transferred to Owatonna as a city park, known today as Kaplan's Woods Parkway.