History Tidbit: The small town of Sunshine was located on the Northside of the Naselle River (facebook.com)The small town of Sunshine was located on the Northside of the Naselle River near where it empties into Willapa Bay. The town grew up around the Shoalwater Bay Mill, which was built in 1884. The area was thickly forested, and loggers would cut the trees and deliver them to the mill by using teams of oxen to drag the timber into the water and floating the logs to the mill.