When a railroad was laid across Foam Lake in 1907, business was naturally booming because the land north of the village and just south of it was occupied and the need for all kinds of equipment, utensils, and services became enormous. Jón Níels Jónsson (John Weum) from N. Múlasýsla took land in 1902 some 13 km. (8 miles) north of the village. There he opened a store in his home and ran it for several years. Near Jón, Ólafur Pétursson took land and together they decided to open a hardware store in Foam Lake in 1908. In the same year, Ingvar Ólafsson moved from Wadena to Foam Lake and opened a timber store. Sveinn Halldórsson’s sons opened a hardware store, Halldorson Brothers, in 1909 and so did John Breiddal around the same time. In 1910 a new municipality was created, Rural Municipality of Foam Lake, and Guðbrandur Narfason was elected the first reeve. He died before the end of the term, and Jón Thorlacius was hired in his place in 1913. Narfi A. Narfason, Guðbrandur’s son, held the position for two terms, but Helgi Helgason, Kristján Helgason’s son, served for the longest time as reeve for 17 years.