Named for the river Steven Holston, which was named for an early Tennessee settler, the 7,580-acre lake operated by TVA is on the edge of the Appalachian Mountains and extends from Tennessee into Virginia. About 60 percent of the shoreline is bordered by Cherokee National Forest. Built in the 1940s, South Holston TVA dam reaches 530 yards across South Fork Holston River to create South Holston Lake and generate power and flood control for the region.

A footbridge from the parking lot below the dam leads to Osceola Island and a one mile loop wildlife trail.