Lake Hamilton is located on the southern edge of Hot Springs, Arkansas's most popular tourist destination.  It was created in 1932 when the Arkansas Power and Light Co. completed Carpenter Dam on the Ouachita River to generate electricity.  Water-skiing, pleasure boating and fishing are popular Hot Springs attractions on Lake Hamilton and rentals of watercraft and sport accessories are readily available.  State Scenic Byway 7 crosses the lake.  Known as one of Arkansas’ five diamond lakes.