Lake Greenwood was formed by a hydroelectric dam built across the Saluda River near Chappells SC.

However, a ruling by the United States Supreme Court ultimately cleared the way for the project to be built using the federal loans.

Articles published in the local Greenwood newspaper, the Index Journal, present a wealth of information about different views of the proposed sale.

The S.C. General Assembly ultimately decided to put the matter to a referendum before the voters in Greenwood County.

However, Senator Nicholson, fearing that local officials might spend the purchase money unwisely, had caused a provision to be inserted into the South Carolina Constitution stating that the proceeds from the sale could never be spent, but instead, had to be invested so that Greenwood County could only receive the interest.

Residential and commercial uses adjoining Lake Greenwood have contributed tremendously to the economic development of this rural area.