The Crystal Lakes Development Corporation, a private developer, transferred ownership to the Trusteeship to care for the community in November 1968. Crystal Lakes consists of approximately 1,020 acres of land, 22 miles of roads, and 5 lakes. The five lakes are Crystal Lake 83 acres, Arrowhead Lake 14 acres, Timber Lake 12 acres, and Spring Lake 3.5 acres. A total of 1,603 lots were plotted.
In June of 1986, the Village of Crystal Lakes was formed. The first trustees were appointed by the County Court of Ray County. They were Jay Criswell, Samuel Briscoe, Virginia McPike, Eldon McPike, and Eugene Griffel.
In 1988 the Crystal Lakes Property Owners Association was formed. The city was charged with caring for the roads, building and sewage regulation, and police protection. The Property Owners Association was charged with caring for the lakes, dams, parkways, and the club house.
In August of 1996, the Village of Crystal Lakes became a Fourth-Class City. The first mayor was Virginia McPike, and the population was approximately 250 residents.
In October of 1999, a fire at the temporary city hall destroyed the building and most of the city files.