Stillwater's 1890 Lumber Exchange on the St. Croix — A Confederate Soldier's Ghost and a Persistent Odor on the Second Floor
101 Water St S, Stillwater, MN 55082
Research updated June 2026
Age
All Ages
Cost
$$$
Overnight stays; restaurant and Irish pub on-site. Rates vary by season.
Access
Wheelchair OK
Historic downtown riverfront hotel; elevator in building
Equipment
Photos OK
Est. 1890 · Stillwater Lumber Boom Architecture · Early Commercial Elevator in Minnesota · Adaptive Reuse of Historic Industrial Building
The building now housing the Water Street Inn went up around 1890 as part of Stillwater's first modern commercial block, erected by the Union Depot and Transfer Company during the height of the St. Croix River lumber trade. The structure was notably advanced for its time: it included modern heating, indoor plumbing, electricity, and one of the earliest commercial elevators in Minnesota. Ten large walk-in vaults on the upper floors secured the fortunes of the lumber barons who did business there; several of those vaults have been incorporated into contemporary guest rooms.
The street level hosted a post office, barbershop, and saloon — the saloon occupies what is now Charlie's Pub. A second historic structure, the Union Depot (1887), stood directly north of the Exchange building and served as a rail terminal with stained-glass windows, terra-cotta fireplaces, and a 75-foot clock tower before closing in 1954.
The historic block reopened as The Lumber Baron's Hotel in 1995. Chuck and Judy Dougherty acquired the property in 2003 and renamed it the Water Street Inn. A major expansion in 2019–2020 increased capacity from 41 to 61 rooms, added Papa's Rooftop bar, and included a new tower referencing the original depot clock tower. The inn is Stillwater's only historic hotel on the riverfront.
Sources
The Water Street Inn's haunting story centers on a specific room and a specific claim: a Confederate soldier, reportedly drinking in the saloon after the Civil War, died in the southwest suite on the building's second floor. The account is documented in Troy Taylor and Rene Kruse's book 'The Minnesota Road Guide to Haunted Locations,' which treats the legend as a piece of regional folklore rather than a verified historical event. No corroborating death record for the soldier has been identified.
The most unusual detail of the account involves sensory phenomena rather than visual apparitions. Guests who have stayed in the second-floor southwest suite describe detecting an unexplained odor — variously characterized as body odor or alcohol — that does not correlate with normal hotel sources. Some accounts also include reports of slurred, unintelligible speech and the general impression of an intoxicated male presence.
The legend has been circulating in Minnesota paranormal circles long enough to appear in multiple regional guides and haunted hotel compilations. The inn itself does not prominently market the ghost story, leaving it to guests and tour operators to surface the claim. The American Ghost Walks Stillwater tour has included the Water Street Inn block in its routing, contributing to the site's documented dark tourism profile.
The southwest second-floor suite is the location most associated with the Confederate soldier legend. Guests seeking the paranormal experience can request that room. Book direct through the inn's website.
The American Ghost Walks Stillwater tour covers Water Street Inn and other downtown haunted sites on a 90-minute walking route through the historic district.
Every HauntBound history is researched from documented sources. We clearly separate verified historical fact from paranormal folklore.
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