The lake was created in 1925 by the Palisades Interstate Park Commission under William A. Welch by building a dam across Stony Brook.

[citation needed] In 1916–1917, the PIPC condemned the land on the grounds that the settlement was built on swampland ("the great Emmetfield Swamp").

The PIPC took possession of the land and the homes, stores, school and church were torn down before the Stony Brook valley was flooded to create the new lake.

The Lake, which is operated by the Palisades Interstate Park Commission, is surrounded by picnic lawns and play fields, and is popular with anglers fishing for bass, perch and sunfish.

[4] On August 27, 2011, Hurricane Irene passed over southern New York leaving the New Sebago Beach ruined and forcing its indefinite closure.