Paugus Bay is 1227 acres located in Belknap County in the Lakes Region of central New Hampshire, in the city of Laconia. A short channel at its north end connects it with Lake Winnipesaukee in the village of Weirs Beach, and a dam on its southern end separates it from Opechee Bay in the village of Lakeport. The bay is named after Chief Paugus, who fought in the Battle of Pequawket during Dummer’s War. The 19th-century construction of the dam in Lakeport raised the elevation of Paugus Bay to that of Lake Winnipesaukee. Water flowing out of Paugus Bay travels down the Winnipesaukee River to the Merrimack River.

Lake Winnipesaukee is the third-largest lake in New England, covering 69 square miles and having more than 250 islands. The lake was formed by glaciers that reversed its flow from southeast to west. Lake Winnipesaukee is a popular tourist destination, especially in summer, when people enjoy boating, fishing, swimming, and relaxing on its beaches. The lake is surrounded by eight small towns, each with its own charm and attractions. Some of the towns are:

• Alton, the largest town by area in the Lakes Region, where you can hike to Mount Major for stunning views of the lake.
• Gilford, home to Gunstock Mountain Resort, where you can ski in winter and zip-line in summer, and Bank of New Hampshire Pavilion at Meadowbrook, a popular concert venue.
• Laconia, the main commercial city on the lake, where you can visit Weirs Beach, the largest public beach on Winnipesaukee, and play at Funspot Arcade, the world's largest arcade.
• Meredith, a picturesque town with upscale restaurants, wine tasting, and shops. You can also take a cruise on the M/V Sophie C, the oldest floating post office in the United States.
• Wolfeboro, the oldest summer resort in America, where you can explore the downtown area with its historic buildings, museums, and galleries.