Created by means of a dam constructed by the U.S. Army Corps of Engineers in 1948, the lake has a dual purpose: electricity production and flood control.

Edgar Evins, Burgess Falls and Rock Island State Parks contain portions of the lake's shoreline, the rest of which has been relatively underdeveloped until recent years.

Lately, the area surrounding Center Hill Lake has been the target of land developers, who have begun construction on several upper-middle-class vacation homes and condos.

[citation needed] In the aftermath of the December 7, 1941 attack on Pearl Harbor, the U.S. Congress authorized the use of War Department funds to build dams at Center Hill and Dale Hollow that would generate the power required to support defense industry in the Southeastern United States.

Construction of the dam's basic flood control mechanisms was completed in November 1948 and Center Hill Lake was created as the reservoir was filled.

[3] To avoid a loss of momentum, the existing contract with Massman-Metcalf-Gordon was modified to include the construction of power producing facilities.

Improvements were made by the Army Corps of Engineers to recreational areas around the lake and the parking lot was greatly expanded.