After a rich vein of copper ore had been nearly depleted in Sheriddon, MB, the company sent out prospectors to find another strike. Around 1945, the expeditions were successful when one of the world's largest nickel strikes was found near the soon to be established Lynn Lake. Most of the people of Sherridon moved to Lynn Lake when housing was completed.
Gold mining is the now the major industry of the town.
One of the most well known people born in Lynn Lake is Tom Cochrane, a singer and songwriter.