Located on the little River and Surrounded by mountains and Mount Mansfield State Forest, Waterbury Reservoir is the 9th largest body of water in Vermont . The dam was built in the 1930's as part of a flood control project for the towns along the Winooski River. During the summer, the lake covers approximately 860 acres with a maximum depth of 100 feet. The reservoir is reduced to between 250 and 300 acres during the winter months to allow room for the spring snow melt. Starting at the dam, the lake is approximately a little over 4 miles to the end of the northern finger and a little bit over 2 miles to the end of the eastern finger. On the western shore of the reservoir you will find Little River State Park. This 60 acre campground has a total of 101 sites; 20 of which are equipped with lean-tos. The boat traffic on the reservoir can be a little heavy during the summer months. There is a 5 mph speed limit on the northern 2/3's of the reservoir and in the eastern finger from approximately Bush Hill Road eastward to the Waterbury Center Day Use area.
In 1763, King George III of England granted a charter to the subjects of the Winooski River Valley. With most of the residents of the valley originating from the town of Waterbury Connecticut, it was decided that the name for the new township should appropriately be named Waterbury. James Marsh became the towns first permanent settler in 1783. The Town of Waterbury was the center for local activity until 1882, when the Village of Waterbury was incorporated. Waterbury is also the home for Ben and Jerry's Ice Cream, Cold Hollow Cider Mill, Lake Champlain Chocolates, Cabot Creamery and Green Mountain Coffee Roasters.