Steinhagen Lake, originally identified as "Dam B", was authorized by the River and Harbor Act of 1945 (Public Law 14, 79th Congress, 1st Session).
Town Bluff Dam is derived from being in the close proximity to the community in Tyler County of that name.
Water releases are utilized by the Lower Neches Valley Authority in Beaumont, Texas, for rice culture, salinity control, pollution abatement, municipal, and industrial uses.
[2] The Lower Neches Valley Authority (LNVA), an agency of the State of Texas, contributed $2,000,000 toward the construction of the Town Bluff Project.
However, if the lake's normal pool capacity is not adequate to satisfy the requirements over an extended period of time, Sam Rayburn Dam can release conservation water into B.
[2] In 2006 - 2007, in a cooperative effort with the Texas Parks & Wildlife Department, the Lower Neches Valley Authority, and the Southwestern Power Administration, a summer drawdown was implemented in an attempt to control the noxious aquatic vegetation that was impacting most of the lake.
The Texas Department of Transportation contacted the Town Bluff Office and requested that the drawdown continue through October, giving them the opportunity to make repairs to pilings on the US Hwy 190 bridge where it crossed the lake.