Arnold Bay on Lake Champlain is located west of Paton and south of Button Bay State Park.

Arnold Bay is named after Benedict Arnold, who was a prominent American general during the Revolutionary War. Arnold played a key role in the naval battles on Lake Champlain, where he fought against the British forces that were trying to invade New York from Canada. In October 1776, Arnold retreated to Arnold Bay after losing the Battle of Valcour Island and set fire to his remaining ships to prevent them from falling into enemy hands. He then escaped overland to Crown Point and Ticonderoga. Arnold Bay is now a historic site and a recreational area, with a beach, a boat launch, and a water treatment plant. It is also home to Arnold Bay Farm, which produces organic vegetables and herbs.