Part two: The Boom Is Over
When the Southern Minnesota Railroad bypassed Forestville in 1868, many merchants and farm families started to leave Forestville for more prosperous communities. The slow post-Civil War economy also contributed to people seeking more prosperous towns and agricultural centers. In 1860, the population of Forestville was 100. In 1870, two years after the railroad decision, the number of people dropped to 68. In 1880 the population had shrunk further to 55.

By 1880 the town's hotels had closed and the only businesses left were the Meighen store, cabinet shop, blacksmith shop and the Luedke and Meighen saw and feed mill. By 1890 the cabinet shop was closed and used for storage.

Until the 1880s, some Forestville residents held on to the hope of a railroad coming to their sleepy town. In 1880, the Caledonia, Mississippi and Western Railroad was pushing westward into Fillmore County, but it went north of Forestville through the towns of Prosper, Canton, Harmony and Preston. As late as 1888, a team of railroad surveyors made quite a commotion among Forestville town residents when they explored routes for the Winona and Southwestern Railroad through Forestville to connect Osage, Iowa, with Lanesboro, Minn. The line was built in 1890, but was moved west of town, going through Spring Valley instead.