Carter Lake is the only city in Iowa located west of the Missouri River. This is due to a flood that occurred in March of 1877, which redirected the course of the river 2km (1.25mi) to the southeast. The remnants of the old river course, which were called Saratoga Bend, became an oxbow-shaped lake, for which the town is named today.
Soon after the formation of the lake, the site became a flourishing recreational area. It included, "a boathouse at the foot of Locust street, hotels and club houses were numerous and the lake was the scene of many a pleasant rowing and fishing party."[2]
After extensive litigation between Iowa and Nebraska, in 1892 the United States Supreme Court finally ruled that Carter Lake belonged to Iowa (145 U.S. 519).
Legally considered part of Council Bluffs, residents lacked the basic city services enjoyed by residents east of the Missouri but were still subject to city taxes. The community successfully seceded in the 1920's, intending to become part of Omaha, but the Nebraska city did not want to pay to extend sewers or water lines either and in 1930 Carter Lake was incorporated as its own municipality.
During the late 1930's and 1940's the Chez Paree nightclub and casino operated openly in Carter Lake because casinos were legal in Iowa but illegal in Nebraska. Consequently, Carter Lake gained the reputation as the biggest gambling spot between Chicago and Reno.
Carter Lake creates a geographic oddity for travelers going to Eppley Airfield which it surrounds on the south and west. Consequently travelers going to Eppley Airfield from anywhere except North Omaha will be going through Carter Lake, Iowa. It has caused great confusion when travelers not used to the area go through and see a "Welcome to Iowa" sign on their way to and from the airport.
Geography
Carter Lake is located at 41°17′34″N, 95°54′50″W (41.292647, -95.913989).
According to the United States Census Bureau, the city has a total area of 2.0 square miles (5.2 km²), of which, 1.8 square miles (4.7 km²) of it is land and 0.2 square miles (0.5 km²) of it (9.95%) is water.
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