The dam that creates the impoundment that we know and love as Lake Callahan and Mud Lake has been identified by the DNR as having no identifiable ownership and no responsible organization or government body maintaining it.
The dam was inspected by the DNR in 2022, with a final report coming out on Sept 1, 2022, shortly before our fall membership meeting. The DNR identified multiple issues with the dam, including its poor condition, its non-compliant and inadequate construction, the lack of maintenance and other minor safety concerns. While the dam does not appear to be in immediate danger, no one can say for sure at this time how secure it is; per the DNR: “Based on the Department guidance, the Callahan Lake Dam is classified as Poor.”
During the fall 2022 Callahan Mud Lake Protection Association (CMLPA) meeting, an ad hoc committee brought these concerns to the membership and the members voted to form a Dam Committee to explore potential solutions related to our lake’s failing dam. The DNR recommended that the first step toward a solution is to form a “Lake District” to take ownership and responsibility of the dam. Of note, the effort undertaken to form a Lake District goes beyond the purpose of replacing the dam; rather, overall protection and quality of our lake.
On March 20, 2025, the Sawyer County Board of Supervisors approved our request to become a Lake District. The Lake District Board, four members who were appointed by Sawyer County and the other representative appointed by the Town of Round Lake, will be responsible for the formation of the Lake District and follow all applicable guidelines. The name of the Lake District is Callahan Mud Lake District. At this time, the Lake Association itself remains in existence, and will continue to for the next couple of years as it relates to an AIS Surface Water grant. The Association will continue to meet on its regular schedule for the time being.
This website serves as an information source to ensure all residents and businesses around and near Callahan and Mud Lakes have access to information related to the dam, immediate steps that need to be taken, as well as other long-term recommendations.
Here is a summary of how a Lake Districts is defined and functions:
The Lake District is a type of governmental organization recognized by the state and so enjoys some advantages that are not available to an association. Once formed, a Lake District is eligible to borrow low interest money under a state program for governmental bodies, apply for DNR dam grants and other funds, raise funds through taxes, and hold insurance.
There is also a wealth of information on the UW Extension’s website, including sample petitions to form a lake district, sample budgets, guidance documents, etc. (See Resources for more information.)
Removing the Lake Callahan/Mud Lake dam would mean a significant drop in water levels and a return to the flowage’s natural state, which is likely mostly marsh in a much smaller Lake Callahan. The DNR report suggested when the dam fails, water levels can be expected to be at least 3 feet lower.
While the costs of repairing/replacing the dam are not insignificant (the County volunteered a casual figure of potentially $1M for a similar type dam), these costs spread out over many years and shared through the many property owners likely far less than the property values lost by the loss of the lake. Additionally, a Lake District is eligible for state loans and grants to further offset the costs to individuals.
Full DNR Sept 1 report documents
Letter from the DNR to the CMLPA
Callahan and Mud Lakes are exceptionally beautiful and scenic lakes home to many species of birds, game fish, and a diverse aquatic plant community. Unfortunately, invasive Eurasian watermilfoil Myriophyllum spicatum (EWM) has become established in these lakes, threatening their biodiversity, recreational opportunities, and overall health as a functioning ecosystem. As…
