Because of its mountainous terrain, Graham County was one of the last sections of the eastern United States to be settled by Europeans. Robbinsville was not incorporated until 1893, and it had only two hundred residents in 1915. The area known as Santeetlah along the Cheoah River was sparsely settled, and in any case, the river valley was flooded after Santeetlah Dam was completed in 1928 In 1939, the U.S. Forest Service purchased from Carolina Aluminum Company the land now occupied by the town of Lake Santeetlah.

Santeetlah Lake and the Cheoah District of the Nantahala National Forest which surrounds it provide exceptional recreational opportunities. The lake has a variety of fish including smallmouth bass, largemouth bass, walleye, crappie, bream, and lake trout. Santeetlah Marina is the only full-service marina on a lake that has 76 miles (122 km) of shoreline. There are over 200 miles (320 km) of hiking trails in the Cheoah District, and one can hike about eight miles (13 km) from Lake Santeetlah to the Appalachian Trail. The nearby Cheoah River is noted for its Class IV and V whitewater rapids, available for use approximately seventeen days a year depending on the water-release schedule from Santeetlah Dam