At the beginning Saunders was well located. It was on the Brule River and on the railroad, the Chicago and Northwestern, built in 1882. It was also primarily responsible for bringing some 70 families tow settle in the area. The Carrus Hattaberg lumber mill made veneer and shingles and there were a number of homes, Smith's grocery store, a boarding house, a school and a saloon.

The community began to decline by the time it was officially platted in 1921. In 1923 the school which had been built in 1908 closed. By 1920 Saunders was to lose the dignity of its name. to avoid confusion with Saunders, Wisconsin, which was also located in an Iron County, the name was changed to Scott Lake.