After heading north with a three-lane stretch that has two southbound lanes and one northbound lane, the two-lane road reaches a junction with CR 560. After this intersection, the road leaves the state forest and continues through wooded areas with some commercial establishments. US 206/CR 521 reaches the community of Hainesville, where it passes through more agricultural surroundings with some development. Leaving Hainesville, the road continues into Montague Township. Near the community of Montague, CR 521 splits from US 206 by heading to the northeast. Meanwhile, US 206 turns to the northwest to run through wooded areas of the Delaware Water Gap National Recreation Area, where it comes to the Milford-Montague Toll Bridge over the Delaware River that is maintained by the Delaware River Joint Toll Bridge Commission.