Butler, Tennessee

Butler, Tennessee is a community in Johnson County that is situated along the northern shore of Watauga Lake. Butler played an important role in the created of the lake when the original town became the location for the lake. Remnants of the old town of Butler still lie at the bottom of Watauga Lake. After the original Butler experienced large scale floods in 1867, 1886, 1901, 1916, 1924 and 1940, the Tennessee Valley Authority (TVA) decided that it was a great site for the construction of the Watauga Dam, which created the lake. Construction was finished on the dam in 1942 and slowly the original town was relocated to what is now known as the community of Butler. To this day, Butler is known as being the only incorporated town that was flooded by a TVA reservoir. Locals like to say that Butler is “the town that wouldn’t drown”.

Today, Butler is an unincorporated town. Before the original town was flooded it had a population of about 600 people, 125 homes and 50 businesses. The relocation project was quite an undertaking as it required new roads and highways to be built, lines of utility to be ran and 1,281 graves to be relocated. Butler can be accessed by traveling Tennessee State Route 67. The community has a museum dedicated to the town that is referred to as “Old Butler” and holds Old Butler Days, a festival devoted to the former town, each year in August.

Butler is filled with plenty to do around the lake. Watauga Lake offers endless seasonal fun in the spring and summer. Fishing, kayaking, swimming, boating, and other pursuits are outdoor activities that can be enjoyed around the lake. The area has quite a bit of vacation rental opportunity as visitors love to flock to the lake during warmer weather. You’ll find a bed and breakfast or two, campgrounds, marinas, and some great restaurants.

• Watauga Lake Winery – winery located inside of the newly transformed, historic Johnson County Big Dry Run Schoolhouse.
• Ville Nova Vineyards – a taste of Tuscany in Tennessee
• Butler Trading Post – dine in, takeout restaurant
• The Rockin’ W – casual comfort food, great for kids
• Dry Hill General Store & Deli – comfort food, quite bites
• Pleasant’s Store – quick, local grocer
• Shoun Lumber – lumber and construction materials
• Cove Ridge Marina & Yacht Club – features boat rentals, slips, campground, and a restaurant
• Lakeshore Marina – features boat rentals, cabin rentals, resort pool, and a restaurant