Bates was a once booming company-owned sawmill town that was founded in 1917 by the Oregon Lumber Company, with a population of about 300 in its heyday.  In the late 1950's the Edward Hines Lumber Company owned the operation.  Mr. Hines approached the owners of the nearby 'Y' tavern and service station, Lawrence & Aggie Immoos, with a new business idea.... build a new  store, restaurant, and bar to serve the Bates mill town patrons and surrounding community.

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The USFS issued a “Special Use Permit” which enabled the business to be built and established within the boundary of the National Forest. Construction was started and completed in 1959, The current Austin House was named after the inn at the stagecoach stop in Austin where Linda Austin served weary travelers with her incredible hospitality from the late 1880's to early 1900's.  The Austin House was a great asset to the community then, and continues to be an excellent stopover for weary travelers and hungry tourists.