Fontana Lake is a reservoir impounded by Fontana Dam on the Little Tennessee River, and is located in Graham and Swain counties in North Carolina. The lake forms part of the southern border of Great Smoky Mountains National Park and the northern border of part of the Nantahala National Forest. Depending on water levels, the lake is about 17 miles (27 km) long. The eastern end is the Tuckasegee River near Bryson City. It has an average depth of 135 feet (41 m) and reaches a maximum depth of 440 feet (130 m), making it the deepest lake in North Carolina. The lake has many inlets into coves and many islands formed from former mountain peaks, especially near the eastern end. As with most dam-impounded lakes, the steep banks are exposed when water levels are low. Many towns were submerged shortly after the creation of Fontana Lake, such as Proctor, Judson, and the town of Fontana itself. More than 1,300 families were displaced by the creation of the reservoir. The federal government promised to construct a road on the north shore to connect displaced families to their graveyards. After six miles and a tunnel, work stopped prematurely. In 2010, the federal government paid Swain County $52 million in lieu of completion.