In 1960 the Iron Bridge Dam was completed, a project to collect water from 9,756 square miles of watershed that forms the basin in which Lake Tawakoni is formed. The principle tributaries above the dam are South Fork, Caddo Creek and Cow Leach Fork. Construction of the Iron Bridge Dam and Lake Tawakoni project, forming the Sabine River, was to provide a municipal and industrial water supply for the surrounding communities and the City of Dallas. Prior to construction of the reservoir in 1960, the surrounding land area had been settled by ranchers and farmers following its occupation by "prehistoric Indians" and many historic Indian tribes for whom Lake Tawakoni is named. In order to provide stewardship of the natural resources present, the master plan was developed to provide a balance between recreational demands of the region and preservation of natural resources. Lake Tawakoni provides fishing, the Lake area has many parks for camping and boat access and the three units of the Tawakoni Wildlife Management Area offers public hunting opportunities.

The Tawakoni WMA, 50 miles east of Dallas, has 2335 acres, of which 1,561 acres is owned by Sabine River Authority of Texas, and is managed under a license agreement with Texas Parks and Wildlife for the state Public Hunting Program. The WMA has three units located in the prairies and drainage areas surrounding Lake Tawakoni. The Pawnee Inlet Unit(north of the Lake) has 1,381 acres and the Caddo Creek Unit(east of the Lake) with 162 acres, are located in Hunt County and along with a portion of the Duck Cove Unit(south of the Lake) 792 acres. The larger portion of Duck Cove Unit lies in Van Zandt County. The Units provide habitat for white-tailed deer, feral hog, waterfowl, dove, other migratory game birds, squirrel, quail, rabbits, hares, furbearers and coyotes.

Lake Tawakoni (/təˈwɑːkəni/ tə-WAH-kə-nee) is a 37,879-acre (15,329 ha) reservoir located in Northeast Texas, about 48 miles (77 km) east of Dallas. It lies within three Texas counties, Hunt, Rains, and Van Zandt. It is used for water supply and recreation. It is under the Sabine River Authority of Texas and the original headwaters of the Sabine are converged under the lake surface.