Blue Lake, formed in the early 1960’s, is a community located in the granite hills on the southern shores of Lake Lyndon B. Johnson.The City of Marble Falls is 15 miles to the northeast and Austin is 50 miles to the east of Blue Lake.Blue Lake is the final destination of Ranch Road 2831 and lies three miles north of Highway 71.

George Wentsch (Major General USAF, Retired) wrote a complete history of Blue Lake and the surrounding countryside. The paper discusses the early development of Blue Lake, the formation of the lake, and descriptions of the area in broad geological terms.The paper can be made available to anyone interested in receiving a copy.

When the community was first developed, there were no paved roads, street lights, no telephones, and extremely limited funds for development. Three of the very early residents (Rev. Edwin Thayer, Melvin P. Field, and Harry Hutchens) decided it was necessary to assume management of the community and were handed the property owners association formed by the developer. Attempts to raise funds for paving of roads and installing streetlights were successful due to the generosity of its residents.

In 1965, Bill Canfield who was one of the original developers of Blue Lake, built the golf club house and completed the golf course, which was designed by Joe Finger, a golf course designer from Houston. In 1972, the property owners association purchased the golf course from Canfield for $25,000 of which amount $20,500 was loaned to the club by property owners. Over the years, the clubhouse was substantially enlarged to its present size.

Also in 1972 the property owners association bought the existing water plant from Canfield and sold bonds to build a more complete plant, which was placed in service on April 5, 1973. Jack Carroll, Ernie Grady and Bill Gosdin virtually built and continued to operate the water plant until Bill’s death in 1999, and Ernie’s departure from Blue Lake in 1998. Jack Carroll had moved from Blue Lake several years earlier.

In 1971 a Water District was formed to operate the water plant and that Water District was turned over to the Llano County Municipal Utility District #1, in 1979. In 1985 a bond issue was approved to provide $185,000 to update the water plant and to extend and improve the water distribution system. Those bonds were paid off in 1999 and a new bond issue passed in 2000 for $191,000 (along with a grant of $100,000) to again update the water plant to increase the water pressure to all homes to the minimum required by the TNRCC. At the same time, the LCMUD remodeled and enlarged its office located at 2900 Blue Lake Drive.The office has been enlarged three times since it was first built by the developer for use as a sales office.