The first historically documented settlement of the valleys of Sugar and Lick Creeks, now part of Lake Springfield, took place in the 1810s. The Edwards Trace, an ancient road between Kaskaskia and Peoria, ran along the eastern side of the valley. The town of
Cotton Hill took shape around a mill near the junction of the two creeks. Also known as "Crow's Mill", the town was the site of a quarry that produced the limestone for the
Old State Capitol in Springfield.
Route 66 passed through the valley and the town of Cotton Hill until it was rerouted to the east to the present-day alignment of
Interstate 55. Initial discussions of constructing a lake in Springfield began in 1925. Three water sources originally were considered for construction of the lake — the Sangamon River, the South Fork of the Sangamon and the Sugar Creek Valley. Engineers determined that Sugar Creek was the most economical option. The effort to build the lake was led by longtime city Utilities Commissioner Willis J. Spaulding. Voters approved a bond referendum in 1930 to pay for part of the lake. Spaulding Dam is named after the commissioner, who oversaw Springfield's electric and water departments from 1909 until 1943. In the end, however, federal relief programs such as the
Works Progress Administration paid much of the lake's $5.64 million cost. 110 properties were purchased in order to build the lake. Most of those who owned land needed for the lake were willing sellers, thanks partly to the
Great Depression, but not all. Leander Shoup had to be "escorted from his land by the sheriff and ten deputies," according to a City Water, Light and Power history of the lake. With Spaulding Dam completed and water backing up behind it, Lake Springfield reached “full pool” on May 2, 1935. Soon afterwards, water began flowing over the spillway, re-watering lower Sugar Creek and completing the dam-interrupted hydrology. Lake Springfield celebrated its 90th birthday in June 2025. The lake has undergone both drought and flood over the past 90 years. The worst drought, which lasted from 1952 to 1955, drew the lake down more than 12 feet below full pool, reducing its water storage to 7.4 billion gallons and threatening operations of both the power plant complex and the water treatment plant. That prompted construction of an emergency connection to the South Fork to supplement the lake. The 1950s drought also led to plans to build a second lake as a long-term backup water source. Nearly all the land for Lake II (later named Hunter Lake, after former utilities commissioner John Hunter) had been purchased by the early 21st century. However, bureaucratic hurdles and continuing public doubt about the need for the new lake left it unbuilt as of 2022. ==Fishing==