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In 1896, a new settlement was established to the south of Alberni, first known as New Alberni and later as Port Alberni. It was built around a new Canadian Pacific Navigation Company wharf at the foot of today's Argyle Street.<ref>{{cite news |url=https://www.timescolonist.com/islander/port-alberni-more-than-just-a-mill-town-4618879 |title=Port Alberni: More than just a mill town |first=Jan |last=Peterson |date=February 8, 2015 |work=Victoria Times-Colonist }}</ref>
From 1900 until 1973, the Alberni Indian Residential School operated injust north of Port Alberni on the west bank of the Somass River.<ref>{{cite web |url=https://thechildrenremembered.ca/school-histories/alberni/ |title=Alberni Residential School |website=thechildrenremembered.ca |accessdate=July 17, 2024}}</ref> The Alberni School is now considered to be part of a genocidal operation against the Indigenous people.<ref>[http://www.irsr-rqpi.gc.ca/english/reconciliation.html Indian and Northern Affairs Canada] {{webarchive|url=https://web.archive.org/web/20030501040932/http://www.irsr-rqpi.gc.ca/english/reconciliation.html |date=2003-05-01 }}</ref> The School, run by the Presbyterian and United Churches and the federal government, forcibly separated children from their families and communities so as to cut them off from their traditional culture. Children at the school were fed poorly, at one time deliberately as part of a malnutrition experiment, murdered, and abused in other ways. The residential school was closed in 1973 and in 2009 it was demolished.<ref>{{Cite news|url=https://bc.ctvnews.ca/residential-school-dorm-to-be-demolished-tuesday-1.368349|title=Residential School Dorm to be demolished Tuesday|work=CTV News}}</ref> ''Strength from Within'' is an art installation by [[Connie Watts]] located in Port Alberni that commemorates survivors of and those whose people died at the Alberni School. The installation depicts two thunderbirds, adorned with West Coast designs, and a third without any cultural symbols to represent the horrors of the residential school era.<ref>{{Cite web|date=2014-10-02|title=Art installation ensures people will never forget, or deny, what happened at AIRS {{!}} Ha-Shilth-Sa Newspaper|url=https://www.hashilthsa.com/news/2014-10-02/art-installation-ensures-people-will-never-forget-or-deny-what-happened-airs|access-date=2021-04-16|website=www.hashilthsa.com|language=en}}</ref>
[[Port Alberni Mill]] opened as a [[kraft process|kraft pulp mill]] in 1946, followed by two [[paper machines]] in 1957.<ref name=christie>{{cite web |url=http://www.pulpandpapercanada.com/news/looking-west-historical-overview-of-the-industry-in-bc/1000141957/?&er=NA |title=Looking West: Historical Overview of the Industry in BC |last=Christie |first=Doug |date=1 January 2004 |work=Pulp and Paper Canada |access-date=9 July 2015 |archive-date=9 July 2015 |archive-url=https://web.archive.org/web/20150709192606/http://www.pulpandpapercanada.com/news/looking-west-historical-overview-of-the-industry-in-bc/1000141957/?&er=NA |url-status=live}}</ref>
