The first cemetery in Sandpoint was a strip of land along the Northern Pacific Railroad track that was donated for this purpose by a man named Ferguson, who had homesteaded 160 acres along the track.

Mrs. J.D. Nesbitt, owned a boarding house that was operated for the Humbird Lumber company. In 1893, J.D. Nesbitt had a shingle mill that adjoined the cemetery. He sold it to Montana Lumber Company of Helena, who in turn sold it to the Humbird Lumber Company. The Humbird Company needed more ground so they bought the boarding house from Mrs. Nesbitt. At the same time they bought the cemetery ground. The Humbird manager, A.E. Richard purchased five acres of land for the purpose of moving the burials from the cemetery along the track. This five acres became what is now called the old part of the Lakeview Cemetery.

The Cemetery board has been working to prepare an up-to-date map of plots to identify existing and vacant gravesites and to preserve historic headstones.