Walters Dam, near Waterville, North Carolina
Photo: Albert Barden, public domain, via Wikimedia Commons

By Jon Tharp, Broker  ·  October 22, 2026

At a Glance

Champion Fibre built Lake Logan's dam on the West Fork of the Pigeon River in 1932, and Pactiv Evergreen owned it as of 2024 with a high hazard rating. Carolina Power & Light started Walters Dam, and its affiliate Phoenix Electric Co. completed it in 1930. Duke Energy runs it now, with its federal license expiring in 2034. Both dams held through Helene. As of 2021, Lake Logan was typically off-limits to public recreation except for season pass holders, and as of June 2026, Waterville Lake had no true public access point.

Lake Logan covers the site of an entire town. Sunburst, a Champion Fibre logging community that once held as many as 1,500 residents, was completely flooded when the company dammed the West Fork of the Pigeon River in 1932.

Both lakes were built to serve industry: one for a paper mill, one for hydroelectric power.

A Logging Town Under the Water

In 1893, Peter J. Thompson of Cincinnati had recently incorporated his new paper company. While visiting his son in the region, he noticed the two natural resources required to manufacture paper: timber and water. Sunburst supplied pulpwood to the Canton plant, about 20 miles away. It had two schools, one white and one black, and in 1910 the first school of forestry in the United States, Dr. Carl A. Schenck's Biltmore Forest School, opened there.

By 1932 the mill needed an uninterrupted flow of water, especially during dry periods. The dam created a lake of roughly 87 to 90 acres, depending on the source, named for the founder's son Logan Thompson.

Champion turned the shoreline into a corporate retreat. The company built facilities from the logs of disassembled cabins from Jackson, Macon and Madison counties and built a small airport, and the Lake Logan Hunting & Fishing Club advertised 35,000 acres of forest and stocked trout streams. Richard Nixon and Billy Graham were among the visitors.

When Champion announced plans to sell its Haywood holdings in the 1990s, "Save Lake Logan" campaigns worked to keep the property from being divided and privately developed. The Episcopal Diocese of Western North Carolina was among the sources of money for the purchase. A 2010 essay on dh.wcu.edu said the Episcopal Church operates a 300-acre retreat there, with an adjacent 4,500 acres preserved for recreation, conservation and environmental study.

Sources: https://dh.wcu.edu/index.php/2010/08/17/lake-logan/, https://www.themountaineer.com/news/whats-the-fate-of-the-lake-logan-dam/article_40e71932-e7d2-11ee-b378-0be970ab1b43.html

A Six-Mile Tunnel Through the Mountain

Walters Dam, known locally as the Waterville Dam, was an engineering project on a different scale. Construction began in 1927 on a project started by Carolina Power & Light, in terrain so rugged the company first had to extend an old logging railroad five miles up the gorge to haul in workers and materials.

The concrete arch dam is 180 feet high and 800 feet long, impounding the Pigeon River near Interstate 40. A 6.2-mile tunnel stretches north from the dam to a brick power plant near the state line. A village was built near the powerhouse for workers, with a clubhouse, schoolhouse, boarding house and post office.

The dam was completed in 1930 by CP&L's affiliate Phoenix Electric Co. A 2020 Mountaineer history says the plant began providing electricity in 1930, while a 2026 Mountaineer article says it has generated electricity since 1929. The dam was named a North Carolina Historic Civil Engineering Landmark in 1980.

Sources: https://www.themountaineer.com/news/haywood_history/building-a-marvel-the-walters-power-plant-and-dam/article_29714968-439d-11ea-aaba-ff4d9857cdc9.html, https://en.wikipedia.org/wiki/Walters_Dam, https://www.themountaineer.com/news/reaping-benefits-from-waterville-dam-duke-must-provide-compensation-for-hydropower-license/article_de258025-24de-42f7-8b79-d6a82b1b6ad4.html

Who Owns Each Lake Today

In March 2024, Glory Hound Events owner Greg Duff noted that despite popular belief, Pactiv Evergreen, not the Lake Logan Conference Center, owned the lake and dam. The Mountaineer's reporting at the time confirmed that Pactiv Evergreen, owner of the Canton paper mill, owned both, even though the mill's closure meant it technically no longer needed the water.

Duke Energy owns the Walters plant after purchasing Carolina Power & Light's holdings. As of 2024 the dam was rated at 112 megawatts, and as of June 2026, power from the plant went on a grid serving 108,000 households in the region.

Sources: https://www.themountaineer.com/news/whats-the-fate-of-the-lake-logan-dam/article_40e71932-e7d2-11ee-b378-0be970ab1b43.html, https://www.themountaineer.com/news/reaping-benefits-from-waterville-dam-duke-must-provide-compensation-for-hydropower-license/article_de258025-24de-42f7-8b79-d6a82b1b6ad4.html, https://en.wikipedia.org/wiki/Walters_Dam

What Helene Did

Thirteen or so inches of rain created what Lake Logan executive director Laura Elliot described as a "tree highway." The athletic and camping field sat under 3 feet of water, and the flood wiped out the runway where Champion International once flew in special guests. The flow did little damage to the cabins and lodge, and the dam held despite the massive number of trees it stopped.

In November 2024, Haywood Waterways director Preston Jacobsen said the lake was low and not swimmable, and that his organization's focus had shifted from cleanup to water quality and stream bank restoration.

At Waterville, Duke drew the lake down to minimize potential threats from Helene. On September 27, the Cocke County, Tennessee mayor posted that the dam had suffered a "catastrophic failure" and called for downtown Newport to be evacuated. Duke said the dam and floodgates were performing as expected, and Duke confirmed the failure reports were false.

Sources: https://www.themountaineer.com/news/swamping-out-lake-logan-flood-left-muddy-silted-waters-in-its-wake/article_39b88bd0-9ebd-11ef-aab0-3759ece29448.html, https://www.wvlt.tv/2024/09/27/tema-duke-energy-says-waterville-dam-has-not-failed-evacuation-notice-still-effect/, https://en.wikipedia.org/wiki/Walters_Dam, https://www.themountaineer.com/news/reaping-benefits-from-waterville-dam-duke-must-provide-compensation-for-hydropower-license/article_de258025-24de-42f7-8b79-d6a82b1b6ad4.html

The Lake Logan Dam's High Hazard Rating

The 62-foot dam was designated high hazard in 2023. That rating reflects the potential harm a failure could cause to life and property, not the dam's condition, which the state lists as fair. Hundreds of homes sit along the river between the dam and Canton, 12 miles away.

A 2023 state letter flagged cracks, spalling and seepage on the concrete and brush and trees in the emergency spillway, and strongly recommended a structural analysis. Canton Mayor Zeb Smathers said the dam's future is one of the most important issues to be resolved after the mill closure.

Source: https://www.themountaineer.com/news/whats-the-fate-of-the-lake-logan-dam/article_40e71932-e7d2-11ee-b378-0be970ab1b43.html

Duke's 2034 Relicensing and the Missing Ramp

Duke's federal license, granted in 1994, expires in 2034. The Pigeon River Fund, a result of that licensing process, has levied around $11 million for environmental and water quality grants.

Relicensing requires Duke to provide recreational and environmental mitigation, and the public gets a voice. Stakeholder identification could start as early as 2028, with a pre-application near the start of 2029 and a final application in 2032.

Access remains an open question. As of June 2026, Waterville Lake had no true public access point, though Duke has bought land on the upper end that could become a public boat ramp if stakeholders push for it.

Source: https://www.themountaineer.com/news/reaping-benefits-from-waterville-dam-duke-must-provide-compensation-for-hydropower-license/article_de258025-24de-42f7-8b79-d6a82b1b6ad4.html

How Access Works

As of 2021, Lake Logan was typically off-limits to general public recreation except for season pass holders, who reserved each visit online. In 2021, passes ran $120 for individuals and $200 for families, with fishing passes and boat stickers extra and no gas motors allowed. The grounds also host retreats, outdoor camps such as Camp Henry, and events like the Cold Mountain Music Festival. Check lakelogan.org for current terms.

Waterville's main recreation value flows downstream. Releases from the lake create rafting, kayaking and tubing conditions on the Pigeon, and the rafting community generates about $6 million in revenue annually.

Sources: https://www.themountaineer.com/outdoors/season-memberships-now-available-at-lake-logan/article_94038e6e-482b-11ec-a92c-7b845d007fe1.html, https://www.themountaineer.com/news/swamping-out-lake-logan-flood-left-muddy-silted-waters-in-its-wake/article_39b88bd0-9ebd-11ef-aab0-3759ece29448.html, https://www.themountaineer.com/news/reaping-benefits-from-waterville-dam-duke-must-provide-compensation-for-hydropower-license/article_de258025-24de-42f7-8b79-d6a82b1b6ad4.html

Keep Exploring

For the towns nearby, start with Canton homes for sale and Waynesville homes for sale. The wider Haywood County listings cover the rest of the county.

You may also like more on the area.

 

Frequently Asked Questions

Can the public swim or boat at Lake Logan?

As of 2021, Lake Logan was typically off-limits to the general public for recreation, except for season pass holders. Pass holders could swim, picnic, hike and boat, and they still had to reserve each visit through an online portal. In 2021, passes cost $120 for individuals and $200 for families, and gas motors were not allowed. Check lakelogan.org for current terms.

Is there a public boat ramp on Waterville Lake?

Not as of June 2026, when The Mountaineer reported there was no true public access point on Waterville Lake. Duke has purchased land on the upper end of the lake that could become a public boat ramp, but that will only happen if stakeholders push for a public access point during the relicensing process.

Did the Waterville dam fail during Hurricane Helene?

No. On September 27, 2024, officials in Cocke County, Tennessee reported a catastrophic failure and ordered evacuations in Newport. Duke Energy said the dam and floodgates were performing as expected, with all gates open, and Duke confirmed the failure reports were false.

About the Author

Jon Tharp is a licensed NC real estate broker with Keller Williams. He's helped buyers and sellers across Western North Carolina for over 10 years, specializing in mountain homes, land, and short-term rental investments, with offices throughout WNC covering all mountainous areas. If something in this post has you thinking about a move, he's easy to reach, (828) 347-9055 or smokymountainhomes4sale.com or Jon@jontharphomes.com.

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