Wallum Lake was known for the clarity and purity of its waters. As early as 1710 Rhode Island deeds refer to it as Allum Pond but later called Wallum. It is believed that the Nipmuc word Allum or Wallum means "good", "fine" or "beautiful". The outlet stream has always been called the Clear River.
Around 1805 the first cotton mill was built just below the dam.
When the New York and New England Railroad completed the railroad line
to Douglas, a section of it passed by Wallum Lake. On November 18,
1892 an article was printed in the Pascoag Herald describing the beauty
of the railroad line at Wallum Lake:
"About 4 miles from Pascoag the road enters the Buck Hill woods and passes for a distance of about 2 miles along the shores of Wallum Pond. It is here that a view of exceptional attractiveness is afforded. The shores of the pond are lined with a dense growth of pines which, with the clear sparkling waters of the lake combine to give an effect of rare beauty."
