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When Kennon Road was finally opened in March 1905, the physical development of the city and the camp shifted to high gear. While a complete set of administrative buildings and official residences for officials were being built to ensure that there was no interruption in government operations during the summer months, the military hill station was taking shape simultaneously. During the summer, 1905, Captain M.R. Hilgard, the first commander of the military post supervised the construction of its first permanent buildings: an Officers’ Quarters and five cottages, one of which served as the Officers’ Mess. The buildings were completed as fast as ox-drawn wagons could bring up supplies. Camp John Hay was opened for visitors by November 1906 although most of the garrison and the guests still stayed in tents.

The development of the outpost gained momentum when Major General Leonard Wood became commanding general of the Philippine Division. He not only facilitated funding releases but took an active development in its physical development. By 1907, quarters for the Division Commander and four cottages for officers, and mess hall were constructed. Contouring the land as well as building tent sites and stables began.

This did not by any means meet the needs of the military, especially when the Camp was “filled to overflowing”, during the summer of 1907. Conditions for the sick however, eased in 1908 when the military hospital became fully operational and began to show remarkable success in the treatment of tuberculosis as well as acute and chronic dysentery.
The next burst of enthusiastic interest and sustained support in the development of the Camp came when Major General J. Franklin Bell became commanding general (1911 – 1914). During his incumbency Camp John Hay’s mission expanded beyond simply a convalescent center and became a haven for rest and recreation. In fact, it was becoming a showplace and a place for civilian and military dignitaries to visit. It offered a variety of facilities including tennis courts, a basketball court, bowling alleys, movie theater, and a dance hall. It was also during this time that an 18-hole golf course shared with Baguio Country Club opened. Major General Bell also designed and supervised the construction of the most enduring landmarks of the Camp: Italian Garden (later Igorot Garden), the commanding general’s house and the amphitheater beside it. The house and the amphitheater were later named in Bell’s honor.

Notwithstanding the massive building efforts, the Camp facilities still failed to meet the needs of the military. Thus, the building boom continued. To expedite matters, construction facilities such as a brick factory were built. This resulted in the first concrete buildings. In 1915, the dormitory for officers and their families (later known as the Main Club) and the Post Exchange and gym (later known as Snyder Hall) were built. By 1916, the hydroelectric plant was operational, bringing electricity to the Camp. The following year, a new 24-bed hospital was erected on the site of Captain Rudd’s original headquarters (later known as the Bachelor Airmen’s’ Quarters). Its initial capacity was later increased to 50. In 1918, a permanent headquarters building was completed with the commissary, warehouses and other facilities such as a concrete officer’s mess, a mess hall, library, bakery, and Post Exchange near by. Barracks for the Philippine Scouts were also built in the area later known as Scout Hill.

By the 1920’s, the timeless look that Camp John Hay would wear for the next 75 years had been set. Little would change physically over the next half century. This would give Camp John Hay an aura of time having stood still, a characteristic that gained it international renown. It was also in the ‘20s that the Philippine Scouts – who had a permanent garrison inside the Camp since 1914 – were authorized to build houses for their families on the road to Loakan. Scout Barrio was then born on the western flank of the Camp.