Work on Ft. Lake ("Fort Lake") began shortly after completion of the Nice Day EP, with the same newly stable lineup of leader Warren Defever on guitar, Chad Gilchrist on bass, Trey Many on drums, and vocalists Karin Oliver, Lovetta Pippen, and Dara Albro (All Virgos Are Mad and Nice Day EP).

Defever stated in an interview around the time of the album's release that he was trying to have less control, and focus more on being the main songwriter and guitarist.

With the new regime, the relationship between Defever and 4AD was now more of a traditional contract between a band and a record label, bringing with it increased commercial expectations.

Recorded over 1997 and 1998 at Defever's Time Stereo studio, the album was released on 4AD (CAD8009 on LP and CAD8009CD) in the UK in late June 1998.

"How It's Gotta Be" continues the Motown influence that had been prevalent on Nice Day, while "Red Haired Girl" combines rockabilly with a chorus reminiscent of shoegazer bands.