Grandy Boat Company goes back to 1903 when Lewis Lee Grandy opened his first shop in Tacoma. In 1908, he partnered with Charlie Taylor to establish the Taylor-Grandy yard in Burton on Vashon Island. In 1911 Lewis and Charlie built a raised-deck cruiser to the design of Otis Cutting. This was the inspiration for the Lake Union Dreamboats that were put into production in 1926 by Otis as the owner of the Lake Union Drydock Co.

In 1922, Lewis' son Earl Grandy purchased a floating boat shop and began a boat repair business on Lake Union. The Grandy Boat Co. produced many small skiffs and dories, and in the 1930's Ed Monk had his office in the Grandy yard and they built many of his cruiser designs.

On August 25, 1967, the Grandy yard burned, ending the tradition of “well-built boats” by the Grandy yard.