Originally Pine Lake was a shallow, muddy pond surrounded by massive hemlocks and hardwoods in the Adirondack Mountains. The Wheeler-Chaflin Company ran a lumber mill on the lake in the early 1900s transporting the logs down the lake. After they shut down operations, Frank Sherman, a local legend, decided to reopen the sawmill and began logging operations on the land surrounding the lake. In 1908, he built the original dam on Pine Lake at the site of the present dam. Unfortunately, in 1911 his sawmill burned down and he went into bankruptcy.

In 1924, Joseph Groshans purchased the property and created Groshans' Park.  He opened the dance hall, which is now the Adirondack Paradise Pavilion, shortly afterward. Groshans' desire was to bring entertainment and dancing to the residents of Fulton and Hamilton Counties. In 1961, following his death, the total property of about 400 acres was purchased by Robert Lord who made several renovations to the pavilion and reopened the large amusement midway. In 1975, he sold the property to William Brandau who continued the operation, running the amusement park, miniature golf, beach, and event pavilion. 

In 1984 Pine Lake Park was purchased by Donna Rush, who modernized the pavilion and booked many legendary country and western singers including Tammy Wynette and Boxcar Willie. She is the one who gave the pavilion the name of the Adirondack Paradise. In 1990, the property was acquired by the Houck and Ivancic families who also owned the adjoining campgrounds to the east. They see their role as guardians of the legacy of this amazing property.