About 1857 James and William Gibson erected a sawmill at the mouth of the Seguin River. William Beatty, with his sons James and William, acquired the mill in 1863, and the following year were granted a licence of occupation for some 800 ha. In addition to lumbering, they laid out a town plot, promoted settlement, opened a store, built a church, constructed roads, and operated boats on Lake Huron and a stage service to Bracebridge. William "Governor" Beatty (1835-1898) lived here and managed the family's enterprises which stimulated the growth of Parry Sound. Incorporated as a town in 1887, it was named in honour of Sir William Edward Parry, noted Arctic explorer.