Alexander "Sandy" McRae was an important pioneer settler of Pictou County. Sandy started as a miller for Anthony Smith at West River. He may have later built and operated his own gristmill near Watervale.

Around 1855, Sandy built his own gristmill and sawmill on the Toney River. His sons John and Roderick operated the mills after his retirement in the 1870s. Alexander Mcrae died on Febraury 1, 1876.

In the fall of 1881, James McKay took over the opration of the gristmill and purchased John McRae's home when he and his family departed for Missouri. Roderick and his family also left Toney River in the mid-1880s.