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The site was surveyed in 1919 after the railway in 1916, and Forestburg was incorporated into a village. Today Forestburg's economy is based on agriculture, coal mining, oil and gas activity, and power generation. With approximately 75 businesses, the rate of employment is good. Forestburg has a good variety of retail and services, with major employment by Alberta Power Ltd., Forestburg Collieries Ltd., and Manalta Coal Ltd.
According to the 2001 Statistics Canada census:
| Population: | 870 (-6.5% from 1996) |
| Land area: | 2.19 km˛ |
| Population density: | 397.7 people/km˛ |
| Median age: | 37.9 (males: 36.9, females: 39.4) |
| Total private dwellings: | 407 |
| Median household income: | $46,434 |