How These 3 Towns in Tennessee Became Sunken Underwater Ghost Towns

archive photos of loyston and butler tn

Some Tennessee communities were lost due to the TVA or other government entities (photos public domain via the Tennessee Virtual Archives)

The story of those who lost to the Tennessee Valley Authority

My home is located in what is known as the Lakeway Area. With tentacles in Hamblen, Jefferson, Grainger, Cocke, Greene, Hawkins, Claiborne and Hancock counties, the Lakeway Area is a relatively modern term. Our communities touch Norris, Douglas and Cherokee lakes. But the truth is, had you arrived here in the 1920s and asked the locals about the Lakeway Area, they’d have thought you were crazy.

“Lakes? We ain’t got no lakes.”

When the Depression arrived, FDR wanted jobs for the region. He wanted hydroelectric power, and he wanted to prevent nearly annual downstream flooding that affected farmland and damaged local economies. So, he created the TVA, or the Tennessee Valley Authority.

Whenever my family drives over to Grainger County to visit my mom, we travel through the town of Bean Station. There are some gas stations, a handful of restaurants and a little more. But I can’t help but think of the other Bean Station, the one that existed before the TVA came and built the Cherokee Dam.

To be clear, I’m pro-TVA. I like the lakes and the summer entertainment. Hydroelectric power is great, and I appreciate the way the TVA prevents the majority of dangerous floods. But I also think about the homesteads, the buildings and more that had to go underwater. I think about the silos – still standing in a lakebed across East Tennessee. They are relics of a time when the lakes were farmland. Here are a few towns that were lost due to the TVA or other government entities:

Francis Stooksbury Mill in Loyston TN Circa 1834
The Francis Stooksbury Mill in what later became Loyston, TN, circa 1834 (public domain photo via the Tennessee Virtual Archives)

1. Loyston

Loyston was located in Union County with roots dating back to the 1780s. It was among the oldest communities in Tennessee. The community was populated by Sharps and Stooksburys. It was originally named after a German immigrant named Henry Sharp who built a frontier fort overlooking the Clinch River. Robert Stooksbury arrived about 20 years later. It went by several names over the years, settling on Loyston about 1894. When government officials arrived, ready to build the Norris Dam, Loyston had a post office, a couple of general stores, a mill, a café and more. Thanks to the abundant farmland, Loyston residents lived a little better than many in the Norris Basin. However, when the TVA took over, efforts were made to create a New Loyston to the South. It didn’t take. Today, the former Loyston exists only under the waters of the Norris Reservoir.

Town of Willow Grove TN Prior to TVA
The town of Willow Grove, TN before TVA flooding (image courtesy of the US Army Corp of Engineers via the Tennessee State Museum)

2. Willow Grove

Located in north Central Tennessee, Willow Grove would be part of what is now Clay County. The town began as a settlement of New York families that bought land from the Cherokee in 1785. Located on the banks of Iron Creek, the town was named for a grove of Willow trees. The soil proved to be useful as farmland. Willow Grove had a gristmill, multiple churches and a few businesses before the Army Corps of Engineers came in and bought the land before the completion of the Dale Hollow Dam, which created the Dale Hollow Reservoir. I should note, in fairness, that the TVA does not manage the Dale Hollow Reservoir. It is under the U.S. Army Corps of Engineers Nashville District.

old hotel in butler tn
Ramsey Hotel and Boarding on Main and Spring in Butler TN, 1910 (public domain photo via Tennessee Virtual Archives)

3. Butler 

Despite being located in Northeast Tennessee in Johnson County – one of the oldest counties in Tennessee – Butler existed for a fairly short time though its roots go back to the 1760s. Located on Roan Creek near the confluence with the Watauga River, the community was known as Smith’s Mill. After the Civil War, it was named for a Union Colonel who served in the 13th Tennessee Calvary. A seminary was established in 1871, eventually becoming Watauga Academy which operated until 1948 when the town was drowned in Watauga Lake.

Butler probably makes the best argument for the TVA of the three communities we’re discussing. Butler suffered major floods in 1867, 1868, 1901, 1902, 1924 and 1940. When the Watauga Dam was completed in 1948, Butler became the only incorporated town inundated by a TVA Reservoir. Before the waters rose, the town of about 600 people was relocated to higher ground, moving 12 homes, 50 businesses and nearly 1,300 graves.

Butler still exists today, and the former town is referred to as Old Butler. New Butler celebrates Old Butler Days every year in August at an annual festival. According to the 2020 census, 297 people live in Butler.

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4 thoughts on “How These 3 Towns in Tennessee Became Sunken Underwater Ghost Towns”

  1. Isn’t Bean Station where there was a major civil war battle ? Wasn’t Kingswood originally a major resort with a golf course where the wealthy folks vacationed? Wasn’t there a rail line from Cumberland to Morristown that went through Bean Station? I can still see the track bed at Bean Station when the lake is at winter pool. In FDRs era , bigger was better. The better lake design should have been from Morristown to Rogersville to save a tremendous amount of prime farmland in my opinion.

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  2. I am a Stooksbury. My grandfather, Conner Stooksbury had two farms taken by TVA. After the second was taken, he gave up on farming and moved to town. I was very young when he passed. I do remember him, but not much more. My dad told me about the two farms. I am neither pro nor con TVA, but I’m sure it took a toll on my grandfather.

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