From Mysteries of Ontario again by John Robert Colombo...
I found this while searching for some Collingwood information for an e-mail inquiry I received.
An Erie chief came to the Blue Mountain area to trade and unfortunately fell in love with a local Petun maiden.
Although they became lovers, it didn't sit too well with the maid's brothers who attacked the chief and hurled his body over the brink. Sadly, the maiden arrived just in time to see this awful act and never recovered from the event.
Later on, the Petuns found her body lying beside her dead lover's in a fern-covered cave and arranged a proper burial for the two unfortunates.
According to legend, the ghosts of the chief and the maid were seen in the mist neat the cave and they avoided the caves and it became known to the local tribe as "The Village of Departed Souls".
UPDATE: May 27th, 2002 We have received an e-mail from someone who's really dug to find that this story is probably based on a possibility of several fictional accounts. Because of the nature of it, it's impossible for us to say with much certainty that the story is not a legend/piece of fiction so we will leave that to you, our readers, but do keep this in mind.
UPDATE: July 21st, 2004 The following was received from one of our long time readers and friends, Dustin...
I know of this area very well. From the age of six, up until my mid teens, I spent every summer vacation in that area. Countless hours were spent exploring those caves specifically. That particular spot you mentioned, is also referred to as "Lover's Leap". The version I was told, by the people whom worked as cave guides, involved a love affair, between a man and a woman from opposing tribes (The woman's tribe being native to that particular area). When they were caught together by her fellow tribesmen, they forced her to watch, as they threw her lover off the edge of that cliff. Somehow, she managed to break free of their grip, and followed him over as well. Hence the name "Lover's Leap".
Just one of many versions, I guess?