The development of the cave began in 1941, when Henry A. Friede purchased the property surrounding the cave entrance. His interest in geology and caves brought him to the Spring Valley area where he studied many possibilities of locating a cave business similar to that of Blue Mounds (now Cave of the Mounds).

Work began during the week of November 2, 1941 to remove the mud and rock debris that had filled the cave passageways. By early April, 1942, much of the debris had been removed and construction started on an entrance building. Arthur Maher, a stone mason from Durand, used the dolomite rock that had been removed from the cave to form the outside walls of the building. A series of stairs had been installed and electric lights were strung along the cave's 1101 linear feet of passage which decended to a depth of 81 feet.

Grand opening weekend was held on June 7, 1942 when, four thousand people visited the opening.