The next town on the route is Pequot Lakes, most famous for its fishing bobber water tower. Highway 371 exceeds freeway standards from the intersection with CR 107 to the intersection with CR 112 and Patriot Avenue. Right after the intersection with CR 16, Highway 371 turns into a two lane road (one lane in each direction). The road leaves the otherwise small town behind quickly. Several miles north of Pequot Lakes and after passing through the small town of Jenkins, MN 371 enters Cass County.