Sweet Water Spring was discovered in the late 1880s when the Patterson Lumber Company, blasting to create a logging road over South Mountain, ruptured an underground vein that produced an abundance of free-flowing water. Work crews enjoyed the sweet, clear water, and Salamancans later carried it home in jugs, while the site eventually became a popular picnicking spot. Legend holds that the spring got its name from a Buffalo druggist searching for gold in the area with property owner N.L. Mr. Kysor, who pronounced the water "sweet" after tasting it. During construction of a scenic highway from Salamanca to the Red House valley in 1926, the spring surfaced farther down the hill, and its channel was reopened and the water rerouted to an area carved from the steep bank. On June 9, 1927, the Allegany State Park Commission authorized construction of a well curb and fountain there, and three months later Senator Albert T. Fancher, chair of the commission, dedicated it to Salamanca residents and all who would come to enjoy it. By January 1929, the project was complete, with a fountain and semi-circular basin built from stones unearthed during highway construction, spring water piped to a faucet in the stone wall, and stone steps leading to a small platform at the top of the waterfall where visitors picnicked and enjoyed the view. Restoration and cleanup work later continued at the site, including repairs by a State Youth Opportunity Camp in 1964, volunteer clearing on National Public Lands Day in 2008, and additional work by the Allegany Historical Society and crews on May 5, 2012.