Lakehills is a census-designated place (CDP) in Bandera County, Texas, United States.

[3] Lakehills was originally known as Upper Medina Lake, until a post office substation was established in the area in the early 1960s.

During the 2010–13 Southern United States drought, lake levels dropped to below 5% capacity and Lakehills was described as a ghost town.

[6][7][8] Heavy rainfalls throughout 2015 and 2016 brought Medina Lake back up to 100% and remained at or near full capacity for the next few years; however, the last time the lake was recorded at full capacity was on July 7, 2019.

[9][10] Due to a series of severe droughts throughout the early 2020s, lake levels once again plummeted with the capacity dropping down to 2.4% in June 2024.

As a result, Lakehills and the surrounding areas have experienced economic hardships due to a decrease in tourism along with a decrease in home values and a rise in homelessness.

As of the 2020 United States census, there were 5,295 people, 2,179 households, and 1,275 families residing in the CDP.