The name Salamonie was derived from the Native American word "O-sah-mo-nee," which means "yellow paint." Native Americans made yellow paint from the bloodroot plant which grew in great abundance along the winding banks of the river. Salamonie River State Forest was created as a demonstration riverside forest for the reclamation of eroded land. The state forest was established in the mid 1930's when local people assisted the state in purchasing the hilly land and bluffs along the Salamonie River. Most of the land's topsoil was eroded away, making reclamation of the area a major challenge. To deal with this challenge, a 200-member Civilian Conservation Corps (CCC) camp was created. The CCC designed and planned the forest and recreation facilities and opened a stone quarry. Several hundred acres of land were reforested and many recreation facilities were built, including Hominy Ridge Lake and the large stone shelter house that stands near the lake. Today the forest encompasses 850 acres and offers many recreational opportunities to its visitors.