The lake was created by the construction of Shadehill Dam by the United States Bureau of Reclamation in 1951.

Species of fish in the lake include walleye, smallmouth bass, channel catfish, yellow perch, northern pike, and common carp.

Also nearby is the smaller Llewellyn Johns Recreation Area, with both managed by the South Dakota Department of Game, Fish, and Parks.

[3] Also, located around the reservoir is the Hugh Glass Lakeside Use Area, named for the mountain man, Hugh Glass, which is also operated by the Game, Fish, and Parks as a free campground, boat launch and picnic area.

[3] A historical monument to Hugh Glass stands near the site of his mauling on the southern shore of Shadehill Reservoir, at the forks of the Grand River.