This community has been around since the building of the old Muskoka Rd (now Hwy 11) and the old Peterson Rd. (now partly Hwy 118). Muskoka Falls was at the start of the Peterson Rd which headed east to Haliburton and on to Renfrew County. Many parts of the road have been reclaimed by forest and some parts were incorporated into Hwy 118.
This hamlet has a nice abandoned church, abandoned homes and an historical plaque about the Peterson Rd.
The Campbell Drowning Tragedy:
Sad Drowning Fatality....Two Daughters of Mr. and Mrs. Wm Campbell, Muskoka Falls drowned Saturday Afternoon......" The home of Mr. and Mrs. Wm Campbell, at Muskoka Falls , was suddenly bereaved Saturday afternoon when two daughters were drowned in the South Branch of the Muskoka River , not far away. The girls had been to the store and to the home of Mr. Jos. Morrow and were on their way home. They stopped to bathe in the river at a place where the water is shallow for a considerable distance out. The younger girl, Ella, aged 8 yrs. was first in the water and though not beyond her depth seemed to be in difficulty. Her sister, Velma, 13, went to her assistance and the girls were seen by passers-by in a car, who thought they were playing. The car had only gone a few hundred yards when on of the occupants, who looked back, thought the children were in difficulty and the car immediately returned but the girls had disappeared beneath the water. A little daughter of Mr. Morrow was sitting on the bank but thought her friends were just playing in the water. In a moment or two the body of Velma was recovered just as a doctor came by. He used every effort to resusitate her but without success. The remains of the other child were not secured till some hours later, the services of the diver at the Hydro works being secured. The little one was near the shore, covered by sand and weeds all but one little hand. Besides the parents there are left to mourn the departed ones, two sisters and three brothers.
The little girls were laid in the Methodist cemetery Monday morning, Rev. J. A. McConnell, of Knox Church , Bracebridge, conducting services. The bearers were relatives of the faily. Among those present from a distance was an uncle, Mr. Peter Campbell of Thorold .
There were many beautiful Floral Tributes, among which were noticed. Thursday July 9 1925
Update - December 2018: The little red house is still used seasonally. Please keep out.