The man-made lake was first formed when the Catawba Power Company built the Catawba Dam and Power Plant near India Hook, South Carolina in 1904.

[2] In 1924, the Southern Power Company raised the level of the dam and built the new Catawba Hydroelectric Station to replace the original.

[2] In October 1960, the power station was renamed the Wylie Hydroelectric Station, and the lake was renamed Lake Wylie in honor of W. Gil Wylie, one of the founders of the original Catawba Power Company that had created the lake and become Duke Power.

[2] Lake Wylie's location on both the South Carolina and North Carolina borders makes it a common recreational destination for residents of nearby cities including Charlotte, Fort Mill, and Rock Hill.

Duke Power manages six public boat access areas on the lake.