Beaver Lake was created following the authorization of the Flood Control Act of 1954, primarily as a response to the devastating floods of the White River. Construction on the Beaver Dam began in 1960 and was completed in 1966 by the U.S. Army Corps of Engineers. The project resulted in a massive reservoir spanning approximately 28,000 acres, which serves as a critical source of hydroelectric power and drinking water for much of Northwest Arkansas.

The lake's development significantly transformed the local landscape, submerging the historic resort town of Monte Ne, though its ruins occasionally become visible during periods of extreme drought. Today, Beaver Lake is a cornerstone of the region's tourism and recreation industry, offering hundreds of miles of shoreline for fishing, boating, and camping. It remains a vital component of the White River basin’s environmental and economic infrastructure.