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The Native Americans called the lake “Oussuk”, meaning “stony pond.” The Dutch settlers called it “Binnin”, meaning “water within land” or “water between other waters”. In 1684, Gov. Thomas Donegan purchased the lake and surrounding territory from the Native Americans and divided this patent into numerous farms, most especially dairy farms. At the time of the Revolutionary War, a man named Capt. Thomas Machin owned and operated a saw mill, grist mill, and finally a mint in what is now the hamlet, at the very beginning of the outlet stream. An historical marker marks the site of Machin’s Mill on Lakeside Road. At that time, the lake began to be called Machin’s Pond. In the 1830s, a local clergyman named James R. Willson began calling the lake Orange Lake. The reasons for this name change remain obscure, but are probably related to its location in Orange County. One source claims that the fact that the lake was round like an orange was also a factor. Local legend states that many residents objected to this name change, but it did stick and remains the name of the lake and the hamlet to this day.
Because the lake is 800 feet (240 m) above sea level, its outlet stream (sometimes called Bushfield Creek) became a very popular site of mills. The largest was the Newburgh Bleachery, owned and operated by the Chadwick Family.
During the 19th century, the shores of the lake became a popular location for summer cottages. Transportation to the lake and the hamlet was difficult until 1895, when trolley service was established between the City of Newburgh and the Village of Walden, and Orange Lake, approximately the halfway point, became a popular stop. Soon after this Newburgh and Walden Electric Railway initiated service, a highly successful amusement park opened on the south shore of the lake. The trolley line went out of business in 1926. The amusement park went out of business during the Great Depression and was demolished in 1941.
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