In 1913 the Portland Water District restricted all bodily contact with Sebago Lake within two miles of its Intake because of pollution concerns. By 1922, Indian Island, located within 3/4ths of a mile from the Intake, still had five summer cottages that were privately owned. Three of those cottages were owned by famous Broadway actors, Malcolm Williams and Florence Reed, Mary Hechter and William Roselle, and Amy Ricard and Lester Lonergan (whose summer home is pictured here).

In 1922, the Portland Water District's lake inspector issued Malcolm Williams a fine for swimming near his summer home on Indian Island. Williams contested the fine and appealed the guilty verdict. The District Trustees decided to take the three cottages by eminent domain believing that the residents would not abide by the no bodily contact law. In 1923, the taking was successful, and by 1925 the District owned Indian Island in its entirety and returned the island to its natural forested state.