Dam Rebuild Lake McQueeney & Lake Placid

By Chad Johnson and Ryan Switzer, co-owners of Waterfront Luxury Group. Last updated November 4, 2026.

For years, Lake McQueeney and Lake Placid sat low while their century-old dams waited for repairs. In spring 2026, both lakes filled again behind new spillgates. Chad lives on Lake McQueeney and Ryan lives on Lake Placid, so we’ve watched every step of it from our own docks.

Here’s what happened, what was built, who pays for it, and what it means if you own a home on either lake or are thinking about buying one.

Why the Old Dams Had to Be Replaced

Lake McQueeney and Lake Placid are two of the hydroelectric lakes the Guadalupe-Blanco River Authority (GBRA) runs on the Guadalupe River. According to GBRA, the dams were built between 1928 and 1932, and GBRA acquired them in 1963.

By the late 2010s, the original spillgates were failing. A spillgate collapsed at Lake Wood in 2016, and Lake Dunlap’s dam failed on May 14, 2019, emptying that lake within a few hours, according to the Texas Water Development Board. GBRA then announced plans to drain several of its lakes, saying it couldn’t fund the repairs on its own, as Texas Public Radio reported. Lakefront owners sued, and the two sides eventually worked out a new way to pay for the rebuilds.

Timeline

Sources: GBRA, the Texas Water Development Board, Texas Public Radio, the Seguin Gazette and the Lake McQueeney WCID, all linked in this post, plus KSAT’s coverage of the 2021 Lake Placid gate problem and the 2026 refill.

What Was Built

According to GBRA’s construction announcement, the project replaced the old bear-trap style crest gates on each dam with new hydraulically operated steel crest gates. It also hardened the existing earthen dams to meet state dam safety rules. The work also added:

• New mechanical and electrical operating systems, with improved backup power
• Upgraded instruments and controls, with remote monitoring
• Video surveillance
• A dewatering system, so future maintenance won’t require draining the lake

Who Pays for It

The rebuilds were financed with below-market-rate loans through the Texas Water Development Board’s Clean Water State Revolving Fund. Each lake’s WCID pays the debt service on its bonds, plus future operating and maintenance costs, through taxes on property inside the district. GBRA still owns and runs the dams, and it passes the hydroelectric revenue from each dam back to that lake’s district.

If you’re buying, the district tax is part of your monthly cost. Ask your title company whether a home sits inside the Lake McQueeney WCID or the Lake Placid WCID, and confirm the current rate.

How the Lakes Have Done Since the Refill

Both lakes have been at or near normal level since April 2026, with two short exceptions on Lake Placid:

• July 19, 2026: One gate was lowered farther than normal, and the lake dropped quickly. The Seguin Gazette reported that GBRA called the dams “substantially complete” and said the water was back to normal by Monday evening. Residents said they hadn’t been warned.
• September 2, 2026: The Lake McQueeney WCID posted that an issue at the Lake Placid dam had lowered the water, that GBRA expected the lake back that afternoon, and that Lake McQueeney was unaffected.

GBRA has also issued new water safety orders for both lakes in May 2026, and a no-wake order for Lake Placid in August 2026. Check its Guadalupe Valley Lakes page for the current orders, maps and lake status.

What This Means If You Own or Buy on These Lakes

1. Inspect the waterfront. Docks, boat lifts, bulkheads and steps spent years out of the water or under different loads. Have someone who builds them check what’s there.
2. Check permits before you build. Since September 1, 2026, GBRA has required a permit application and a $600 fee for new or changed docks and other waterfront structures on these lakes. Its form also requires structures to handle the lake dropping as much as 12 feet. Our GBRA dock permit guide covers what needs a permit and what to check before you buy.
3. Budget for the district tax. Confirm whether the home is inside the lake’s WCID and what it owes each year.
4. Look at flood risk. New gates don’t remove flood risk on the Guadalupe. Check FEMA’s flood map service and get an insurance quote early.
5. Judge the home as it is today. With the lakes full again, you can see docks, views and water access as they really are. We can’t promise what any home will be worth later, but we can show you recent sales.

Our lake home buyer’s guide covers the rest of what to check, and our Guadalupe lakes comparison shows where all six lakes stand.

Frequently Asked Questions

Is Lake McQueeney full now?

Yes. GBRA completed its new spillgates in March 2026 and reports the lake back at normal pool in April 2026.

Is Lake Placid full now?

Yes. GBRA completed its spillgates in February 2026 and reports normal pool since April 2026. The lake dipped briefly on July 19 and September 2, 2026, and recovered within about a day both times.

Who owns the dams?

GBRA owns and operates both dams. Each lake’s WCID repays the loans that funded its rebuild.

Will the lakes be drained again?

Nobody can promise a lake level, because floods, drought and maintenance all affect it. The new dams include a dewatering system, so future maintenance shouldn’t require draining the lake.

What about Lake Dunlap and Meadow Lake?

Lake Dunlap’s rebuild was completed in 2023. Meadow Lake has been drawn down since March 2023, and its dam work hasn’t started. See our Lake Dunlap and Meadow Lake pages for details.

Thinking About Buying or Selling on These Lakes?

We live here, and we’re glad to talk through any property on either lake. Browse Lake McQueeney homes for sale or Lake Placid homes for sale. You can also call Chad at 830.387.1101 or Ryan at 830.369.2032, or send us a message.

This post is general information, not legal, tax or insurance advice. Lake status and rules can change, so please confirm current details with GBRA and the lake’s WCID before you act.