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This small town originally known as Anderson began as a stop on the Washington, Idaho, and Montana rail line. It was renamed for William Deary, an early settler and manager for the Weyerhaeuser Company. Deary and the company he worked for platted the town in 1907 and constructed the lumber mill as well. The town was officially incorporated in 1912 but was nearly wiped off the map in 1923 when a fire destroyed every building on the west side of Main Street except for the bank.

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