Lakeville developed on the site of a community named for Lake Tolay, a large lake once in the valley to the east that early Indian settlers had named after their former chief. A first boat landing was built in 1853, where passengers and freight were transferred from steamboats to the regular stage coach line serving Petaluma, Sonoma, and other points. Settlers received deeds to land from the original Vallejo holdings, and a post office was founded in 1859. Ranches, farms, dairies, and vineyards spread through the surrounding area, and the town became a bustling center with a school, blacksmith shop, hotels, saloons and dance hall, a winery, a race track, and a bear and bull pit. Lakeville remains a thriving agricultural community. Nearby, Donahue Landing was built by industrialist Peter Donahue in 1870 as the southern terminus of his SF&NP Railroad, with a roundhouse and turntable, depot, repair and carpenter shops, hotel, saloon, school house, two laundries, a combined stable and dance hall, and dwellings. The town prospered for fourteen years as a water-rail transfer point until the SF&NP completed a new line from Petaluma to Tiburon Point in 1884, after which the turntable and facilities were dismantled and moved to Tiburon, leaving only the stable and a house.