White Pines was built by American Forest Properties, Inc. at the site of the former White Pines operation of Blagen Lumber Co. The community of White Pines, founded by company president Frank Blagen, emerged during construction of the mill, which began in the fall of 1938, and the sawmill was completed in the summer of 1940, when American Forest Products acquired a controlling interest and later full ownership. Employees and their families soon built homes nearby, and as the town grew the community built a Post Office, school, Community Club, and grocery store, most of which remain part of White Pines. During the sawmill's 22 years of operation, production averaged about 30,000,000 board feet annually. Lumber was transferred to the American Forest Products manufacturing plant and shipping facility at Toyon, between San Andreas and Valley Springs, and the Toyon plant shipped finished lumber products throughout the United States. Sawmill operations ended in 1962, and plans for White Pines Lake began in the fall of 1966; construction of the dam started in the fall of 1969 and was completed in November 1970.