By the 1880s the Bellingham area was well settled, with the economy based on timber, coal, fishing, canning, and farming.  Bellingham had a railroad connection to the trans-Canada line. In 1903, the bayside villages of Whatcom, Fairhaven, and Sehome were merged to form the city of Bellingham.

On July 5, 1858, workers in Bellingham began erecting Washington Territory's first brick building. The T. G. Richards Building still stands and is possibly the oldest brick structure north of San Francisco. The building was used as a warehouse to store merchandise to outfit the thousands of men who came for the Fraser valley gold rush.

Today the Fairhaven District has many brick buildings left from this era that have been turned into art galleries, specialty shops and restaurants in a thriving bayside community.  New buildings have been built in the brick tradition of the past to retain the character of this historic district.

The Fairhaven District still has a connection to Canada as a marine hub for marine vessels going to Victoria, British Columbia as well as Alaska. The Bellingham bay provides recreation for locals and visitors from kayaking, canoeing, sailing to motorboat tours.