In 1874, David G. Ainslie settled on 80 acres about four miles south of Winlock. He improved on the land, and established a small saw mill. Over time, he property holdings encompassed a sizeable portion along Olequa creek. He established the Ainslie Post Office, and provided land for the Ainslie School District No. 47. In 1890, he sold his property to the Ainslie Lumber Company, which established a mill and town in the area. In addition to the Ainslie Post Office and Ainslie Company Town, there was also a community of Ainslie south of David Ainslie's tract, near present-day Vader. This community may have also been called "Capitola" by local residents.

Donald Olson has provided transcriptions of several property transactions which show how the Ainslie tract changed hands over time. In addition to these deeds, Don has also plotted the land tracts involved to show the locations in relation to each other and to other area landmarks.

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