The Red River Lumber Company established and built a lookout on Peg Leg Mountainin 1913. The Lassen National Forest took over administration sometime in the 1920's and constructed a new lookout. Cal Fire now owns the lookout and constructed a new structure in 1984. Possibly the last lookout constructed by them. The Lassen National forest was staffing the lookout as of 2016.

The 1920's lookout was removed to the Susanville CA fairgrounds. A replica was constructed and was on display as of 2008.

The interior of this lookout has been attractively finished off with wood grain cabinets and wood paneling, both upstairs and down. The infrastructure design of the tower is similar to Plan Number 1558 (Bully Choop). The cab is based on the 73 2-6A plan. The original C CC era garage is still at the site, although in deteriorated condition and with a damaged lightning protection system. (MVT 10/91)

The construction of the new structure was unique in that it was prefabricated and put together with prison inmate labor. Each part was then labeled, dismantled and shipped to the site where it was reassembled.