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Smithybridge, the area developed rapidly after the arrival of the Manchester and Leeds Railway in 1839, and the construction of Summit Tunnel in 1841, the longest railway tunnel in Europe at that time. In the 1850s, Henry Newall of Harehill, owner of Harehill Woollen Mill and a recently built gasworks, and his engineer, Mr. Sladen, later the landlord of the Mermaid Inn, saw the potential of the lake as a tourist attraction. They leased the lake from the canal company and created novelty amusements and facilities for boating. Despite very cold water and strong undercurrents caused by water entering and leaving the lake, small rowing boats became popular, and two paddle steamers were operated from 1856. By 1860, there was a rowing club, and a regatta was held in 1862. Two hotels, the Beach Hotel and the Lake Hotel and Gardens, catered for day trippers and weekend visitors. The facilities were advertised by the railway companies, who transported visitors to Smithybridge and Littleborough stations, for the short walk to the lake and its facilities.
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