Before its current status as a recreational area, the land surrounding the reservoir in Grenada County was primarily used for agricultural purposes. Ownership of this land varied among private individuals and families who farmed crops like cotton and timber resources.

The U.S. Army Corps of Engineers constructed a dam on the Yalobusha River between 1950 to 1954 for flood control purposes, which led to the creation of what is now known as Grenada Lake. The project's primary goal was to manage water flow into the Mississippi River and reduce flooding downstream.

Following construction, management focused on developing facilities around it for public recreation use while preserving natural habitats within park boundaries-these include campgrounds, boat launches, beaches designed with visitor enjoyment in mind but also conservation efforts such as wildlife refuges that protect local species' ecosystems.

Historical features within these lands reflect both Native American heritage-with several archaeological sites indicating past indigenous settlements-and European colonization influences through artifacts from early settlers' homesteads scattered throughout areas adjacent to trails or designated historical zones managed by federal authorities today.