Lake Toxaway, NC: The Lake That Vanished and Came Back

By Jon Tharp, Broker · October 22, 2026

In August 1916, after days of hurricane rain, the sky over Lake Toxaway turned crystal clear, and guests headed to the water, where they splashed and played. Around noon, according to The Daily Free-Press, an alarming volume of water was noticed sweeping through the masonry of the dam. By the time it was over, the resort had lost the lake it was built around.

The Toxaway Inn and "America's Switzerland"

Lake Toxaway was the Toxaway Company's biggest undertaking yet. In July 1903, the 60-foot-tall earthen dam was completed, creating a lake one mile wide and three miles long. The five-story Toxaway Inn was completed not long after, and the resorts depended on a rail line Southern Railway built from Asheville.

The inn accommodated 500 guests and offered central heat, elevators, long-distance telephones and French chefs. According to Rebecca Suddeth of the Transylvania Heritage Museum, the guest register boasts Thomas Edison, Henry Ford, Harvey Firestone, Cornelius Vanderbilt, the Dukes and R.J. Reynolds. Hotel rates were about $10 a night at a time when a Transylvania County teacher earned about $40 a month.

The inn needed housekeepers, bellhops, front desk clerks, waiters and maintenance technicians, and natives needed jobs. According to Suddeth, the hotel also "required supplies that could be bought from local people," and Lake Toxaway "put the county on the map."

Sources: https://en.wikipedia.org/wiki/Lake_Toxaway, https://blueridgecountry.com/features/lake-toxaway-north-carolina-birth-dearth-rebirth/

The Day the Dam Gave Way

In July 1916, back-to-back hurricanes brought what is locally known as the Great Asheville Flood. Then, in August, a third hurricane dropped more than 20 inches of rain in less than 24 hours. The dam had not been engineered with a water level control, and on August 13, 1916, it gave way.

Accounts still differ on whether the water left in one rush or more slowly over several days. Either way, more than five billion gallons went over Toxaway Falls into South Carolina. Farms, forests and homes were decimated, crops were washed away, and community mills were ruined. The only casualty was a mule. Toxaway Falls still shows the trauma, its granite exposed for a great distance down the falls.

The inn survived, but no well-to-do family wanted to vacation beside what the Asheville Citizen described as a pit of "black, oozy, sticky mud." Investors bought it in 1926 and spent heavily trying to revive it, but the Great Depression hit. In 1947 the property sold for $20,000, and the new owner stripped the inn for salvage and razed it.

Sources: https://library.transylvaniacounty.org/the-toxaway-inn-part-two-aftermath/, https://blueridgecountry.com/features/lake-toxaway-north-carolina-birth-dearth-rebirth/, https://en.wikipedia.org/wiki/Lake_Toxaway

The 1960s Rebuild

In 1960, South Carolina real estate developer Reginald Heinitsh partnered with D.W. Boyd to form Lake Toxaway Estates, Inc. The company constructed a dam with a solid granite spillway, filled the lake, and built 40 miles of roads. Heinitsh purchased 8,900 acres to create a vacation retreat. NCpedia dates the rebuilt dam to 1961.

During the reconstruction of the dam and refilling of the lake, relics were uncovered, including the rotting hull of a steamboat once used to carry guests around the lake. In 1963 Heinitsh built a golf course, and the Lake Toxaway Country Club was formed.

Sources: https://library.transylvaniacounty.org/the-toxaway-inn-part-two-aftermath/, https://blueridgecountry.com/features/lake-toxaway-north-carolina-birth-dearth-rebirth/, https://www.ncpedia.org/gazetteer/l?page=7, https://en.wikipedia.org/wiki/Lake_Toxaway

The Greystone Inn

In 1913, Savannah's Lucy Camp Armstrong, assisted by eleven servants, camped on a short, oak-dotted peninsula to make sure she liked the spot before building. Her Swiss-style summer home, originally known as Hillmont, was completed in 1915.

The home endured after the lake drained, and she lived there for decades. After her husband Carl Moltz died in 1963, she sold the residence to R.D. Heinitsh Sr. In 1984 Tim and Boo Boo Lovelace bought the property and formed a business partnership with the Lake Toxaway Company, and The Greystone Inn opened on July 15, 1985. Following an extensive renovation, the mansion was listed on the National Register of Historic Places.

Brandon and Daphne Berger have owned the inn since September 2024. It offers 30 rooms and suites, a restaurant with lake and mountain views, the Mansion Bar, and a spa open to overnight guests and day visitors.

Sources: https://en.wikipedia.org/wiki/Lake_Toxaway, https://theplateaumag.com/a-timeless-retreat

Longcliff, a New Village on SR 64

As of June 2024, construction was underway at Longcliff, a 107-acre mixed-use development on SR 64 in Lake Toxaway. It was inspired by a local area study commissioned by the Historic Toxaway Foundation in 2018, and Toxaway and Sapphire residents had expressed interest in a town center and village green.

Plans call for a retail market, single-family homes, shops, restaurants, condos, an inn, and a mountain lodge and spa overlooking the escarpment. A 44-acre nature preserve with almost three miles of walking trails runs through the middle, protected under a conservation easement held by the North American Land Trust. The property is surrounded by Gorges State Park.

Source: https://thelaurelmagazine.com/lake-toxaway/live-amongst-natures-beauty

Who Actually Owns the Lake

The Lake Toxaway Community Association, a nonprofit organized for the residents of Lake Toxaway Estates, owns Lake Toxaway and Lake Cardinal. The lakes are for the exclusive use of Estates property owners in good standing and their guests. "Good standing" means, at minimum, that all assessments, fees and charges are paid.

The LTCA covers over 1,127 residential lots and maintains the lake, dams and 30 miles of private roads. Dues are invoiced yearly on an August-to-July fiscal year and do not include the country club or the Greystone Inn, which are private entities.

Sources: https://laketoxawaycommunity.net/about-us/, https://laketoxawaycommunity.net/wp-content/uploads/2024/09/Lake-Boating-Fishing-Regulations-Amended-August-2024.pdf

Boat Decals and What Can Go on the Water

Every watercraft, including canoes and kayaks, needs a current LTCA decal on the starboard side. Paddleboards are the exception. To get a decal, the property owner and boat owner must be the same person, the account must be paid in full, the applicant must watch a safety video, and powerboats require at least $100,000 in liability insurance.

Lakefront owners may keep up to two powerboats at their property. Non-lakefront owners may decal one powerboat for launching at the marina. Boats and trailers that have been used on any other body of water must be commercially cleaned before coming back.

New and replacement internal combustion boats are capped at 25 feet, and new and replacement engines at 400 horsepower for inboards and stern drives and 200 for outboards. Jet-powered and personal watercraft, houseboats, cabin cruisers and boats designed specifically to create wakes are banned, and built-in ballast systems must be disabled. Normal hours of operation are 8 a.m. to 8 p.m. or one hour after sunset, whichever comes first. Outside those hours, all boats shall proceed cautiously at low speed, and no nighttime water-skiing or tubing is permitted.

Source: https://laketoxawaycommunity.net/wp-content/uploads/2024/09/Lake-Boating-Fishing-Regulations-Amended-August-2024.pdf

Docks, Guests and Renters

Fuel storage tanks are not allowed on personal docks or boathouses or within 75 feet of the lake front, any dredging needs written LTCA approval, and owners must remove fallen trees from the water.

Renters and Greystone Inn guests cannot put their own boats on the lake. Greystone guests and people renting homes in the Estates may rent boats at the marina, which the Lake Toxaway Company owns, with a Guest card. Airbnb and VRBO renters need association approval first, and guests of owners of unimproved lots cannot rent boats from the marina. Hosts are responsible for fines their guests incur.

Sources: https://laketoxawaycommunity.net/wp-content/uploads/2021/04/Guest-definition-and-boat-rental-requirements_Final.pdf, https://laketoxawaycommunity.net/wp-content/uploads/2024/09/Lake-Boating-Fishing-Regulations-Amended-August-2024.pdf

Living at Lake Toxaway Today

According to John Nichols, Heinitsh's grandson, many property owners share their time between Lake Toxaway and places like Texas and Florida, but there is an increasing number of full-time residents thanks to high-speed internet and the urban exodus fueled by COVID-19.

If you own at Lake Toxaway and plan to sell, start with our Brevard seller's guide.

Source: https://blueridgecountry.com/features/lake-toxaway-north-carolina-birth-dearth-rebirth/

Keep Exploring

For the towns nearby, start with Brevard real estate and Sapphire real estate. The wider Transylvania County listings cover the rest of the county.

You may also like more on the area.

 

Frequently Asked Questions

Can the public use Lake Toxaway?

No. Lake Toxaway is a private lake owned by the Lake Toxaway Community Association and reserved for Lake Toxaway Estates property owners in good standing and their guests. Greystone Inn guests and approved renters of homes in the Estates may rent boats at the marina with a Guest card, but they cannot bring their own boats onto the lake.

Are jet skis allowed on Lake Toxaway?

No. LTCA rules prohibit jet powered watercraft and personal watercraft, along with houseboats, cabin cruisers, seaplanes, and boats designed specifically to create wakes. Boats with built-in ballast systems must have them disabled, and wake plates or wedges must be removed or disabled.

What county is Lake Toxaway in?

Lake Toxaway is in western Transylvania County. The Lake Toxaway Community Association describes it as minutes from Highlands, Cashiers and Brevard, and U.S. Highway 64 is the main road through the area.