Lackawanna provides tangible evidence that many USPS units come into being as spin-offs from other large, well organized Squadrons. Many of our charter members were formerly with the Northern New Jersey Squadron. As the Northern New Jersey Squadron continued to grow until it had about 700 members, its Planning Committee recommended sponsorship of a Squadron in the Morristown area. This suggestion was carried forward at the District 4 Spring Conference in March 1958 with the decision to conduct a Piloting Course in that locality. About the same time, a questionnaire circulated among Northern New Jersey members revealed considerable interest in having such a new Squadron formed.

Then Lt/C A. J. Sequeria. N, called a preliminary meeting at Winchester's Turnpike Inn, Morristown. Martin Reed, Jr., AP, was named chairman of a group to carry on the organization work and make arrangements for the initial Piloting Course. Telephone calls and group conferences beyond number took place in the next few weeks, culminating in another meeting at Winchester's on 14 June when the New Squadron Kit was presented. Specialized duties were then assigned: W. Sheldon Bennett, AP, secretary pro-tem and chairman of the name committee; Harold W. Butler, N, chairman for nominating officers and committee chairman; Robert I. Ward, N, chairman of the by-laws committee.

The efforts of these and many others resulted, on 29 September 1958 at Winchester's, in the signing of a charter petition by 51 members. The group also provisionally approved the name Lackawanna Power Squadron, adopted the by-laws, and elected officers. These provisional actions were ratified on 10 November 1958 when the National Governing board granted the charter.

Lackawanna Squadron attracted new and active members to complement the founders and through the years continued to grow. By 1966, Lackawanna's membership was well over 400 and during that year the Hopatcong Squadron was formed largely from Lackawanna members residing and boating in the Lake Hopatcong area. In 1999, they took on the name of Lake Hopatcong Sail and Power Squadron. 

Lackawanna's continued growth lead to the formation of another squadron. In 1998, the Long Valley Squadron was formed by members from Lackawanna residing in the Long Valley area.