The history of early industrial development, water, energy, transportation, and recreation are among the most significant variables in the development of Hawley Borough, and of the entire "Lake Region." When the area was first settled in the late 1700's, ice harvesting, logging, and tanning were the primary forms of industry along with subsistence hunting and fishing. The pioneers who came to this region found a place where three creeks converged.and these early settlers built a sawmill along the original "Eddy" (now Hawley). Lumber was harvested and rafted down the Lackawaxen and Delaware Rivers to Philadelphia.

In the early 1800's mineral deposits, including anthracite coal, were discovered in the region and although Hawley was not located directly in the deposit fields, it played a key role in the creation of transportation lines for the eastern markets of the United States. A combination of canal and railroads transported coal through the northeast corridor, and both forms of transportation were developed in Hawley. In 1823, New York state allowed for the development of the D&H Canal which was a 108-mile long waterway between neighboring Honesdale, PA and the Hudson River (terminating near Kingston, NY) As a result, from the 1840's to the 1860's Hawley and the surrounding areas were very prosperous.

 

The people who lived in Hawley were primarily employed at transfer docks, train and car repair shops, and other support industries for the coal trade. Ancillary businesses sprung up to support the town such as clothing, hardware, grocery and feed stores, and boarding houses.

With the arrival of the Erie Railroad in 1865, the usefulness of the canal and gravity railroad was exhausted. As these industries declined, others took their place. The waterfalls in the area helped in the establishment of several fine glass cutting operations such as Keystone Cut Glass, John S. Connor Glass, and the Wangum Cut Glass Company. This period saw the development of numerous textile mills, including silk manufacturing. The imposing bluestone building at the top of Bellmonte and Welwood Avenue was constructed by Dexter Lambert & Company of Boston ca. 1881 as the Bellmonte Silk Mill and is the largest bluestone building in the world. The town continued to grow and Hawley was separated from Palmyra (Wayne) Township and incorporated as a Borough on January 23, 1884.

By 1922-25 another cycle of growth began when the Pennsylvania Power & Light Company dammed the Wallenpaupack Creek to generate hydroelectric power. The resulting completion in 1926 of a manmade lake, Lake Wallenpaupack, became the basis for real estate and tourism development, as well as recreation. Among these, the latter continue to be resources which make Hawley a desirable place to live and/or visit, and form the basis of many of Hawley's opportunities today.