Before the Tallulah River was dammed for a hydroelectric generating station, this area of Rabun County was a fertile river valley, populated by small farms. When Lake Rabun was impounded by Mathis Dam in 1915, property fronting the lake was sold to Atlanta families for summer homes. Mail, freight, newspapers and groceries were delivered by the Tallulah Falls Railroad. The depot was located next to what was then the main north-south road through Rabun County. Barges on Lake Rabun brought supplies for the building of two additional hydroelectric dams upstream on the river. Virtually all of Lakemont’s buildings date from this earlier time, but two are particularly notable: the Lake Rabun Hotel and Alley’s Store, which has been the virtual center of the community since it was built in 1925 across from the train depot.