Lake Chatuge is a 7,050-acre reservoir on the Hiwassee River straddling the Georgia–North Carolina border, created by the Tennessee Valley Authority's Chatuge Dam in 1942. The lake is the centrepiece of outdoor life in Hiawassee: boat ramps, marinas, and a public beach are all accessible from town, and the surrounding mountain scenery is particularly vivid in autumn.
Fishing is excellent — largemouth and smallmouth bass, rainbow trout in the inflows, and bream. Boat rentals are available at the lake marina, including kayaks and pontoon boats. Swimming is possible at the public beach. The Ridges Resort sits directly on the lake and offers boat docking for guests. On calm mornings the reflection of the surrounding ridgeline on the water is one of the better sights in this part of Georgia.