Around 1781, a Frenchman named Charles Sallier settled on the shore of a pleasant lake, married, and built a house. His property became known to travelers as "Charlie's Lake," and his hospitality became famous. However, the town grew slowly until the Southern Pacific Railroad's link between Houston and New Orleans was finished. Stimulated by railroad transportation and under the more sedate name of "Lake Charles," the town began its real growth, mainly via timber and rice culture. Captain J. B. Watkins began a tremendous penny-postcard publicity campaign in 1887. It was effective, but not so effective as the discovery of oil and sulphur early in the 20th century. In 1926, when a deepwater port was opened, the city's future was assured.

A massive reforestation project, centered around Lake Charles, began in the 1950s, and revitalized the area's lumber industry. Now oil, rubber, and chemicals have joined cattle and rice to make this a vital industrial center. McNeese State University is located in Lake Charles.