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Caddo Lake has been called the most beautiful lake in America by most who have seen it. It is also a lake of mystery and lots of history.Caddo Lake is the largest natural lake of fresh water in the south, covering about26,800 acres at 168.5 ft (sea level). The acreage can fluctuate easily to over 35,000 acres at times of high water levels. Half the lake is in Texas and half in Louisiana and within 20 miles of southwest Arkansas. There are 4 watersheds that supply Caddo Lake with water: Little Cypress Bayou, Big Cypress Bayou, Black CypressBayou, and Jeems Bayou.