(Note: Most of the information below has been taken from the Thousand Acres Home Page)
In the early 1920's the Eastern Land Corporation, a subsidiary of the Youghiogheny Hydroelectric Corporation, purchased land in Garrett County, Maryland for the purpose of power generation. Three hydroelectric projects were envisioned, one on a major stream called Deep Creek, which flows into the Youghiogheny River, and the others on the Youghiogheny River itself. Land was purchased around Deep Creek, its tributaries, and along the Youghiogheny River. Only the Deep Creek dam about 1.5 miles above its junction with the Youghiogheny River was constructed and the reservoir was filled in 1925.
During his first administration, President Franklin Roosevelt, recalling the lack of public access to vast areas of his native New York owned by power, lumber, and coal companies, issued an Executive Order mandating these companies to divest themselves of excess lands. This set the stage for the sale of those portions of the farms and family holdings which had covered the basin of Deep Creek and its tributaries, but which were not needed by the electric company for the operation of its hydroelectric plant at Deep Creek Lake.
To determine which lands they would sell, the Pennsylvania Electric Company (Penelec), successor corporation to Youghiogheny Hydroelectric, first defined a protective buffer strip around the high water level of the lake. The spillway of the dam was constructed at elevation 2462 and included the capability to install four-foot high flashboards for increased capacity. Hence, Penelec defined the buffer strip to encompass all lands above elevation 2466, with a further 25-foot setback from this line.
The land to be sold outside the buffer strip was comprised of 12 parcels around Deep Creek Lake totaling approximately 4,000 acres, and one 3,000 acre parcel in the Youghiogheny Gorge. Of the 12 parcels surrounding Deep Creek Lake the largest was an 1,120 acre tract made up of holdings from 11 different families including such well known Garrett County names as Offutt, Beckman, Naylor, and Beachy. This unique property, which dominates the southern half of the lake, came to be known as Thousand Acres.
When Penelec offered its Garrett County lands for sale, Fulcher P. "Pete" Smith, President and founder of the Cumberland (Maryland) Box Company, submitted the winning bid. Initially Fulcher Smith wanted these lands to harvest timber for the box company. With his son, F. Perry Smith Jr., he later began the development of his land along the Deep Creek Lake shoreline in 1947. Subsequently, Mr. Smith sold separate portions of his holdings to each of his five children.
The present owners of Thousand Acres, Patricia Smith Erker and Constance Smith Franklin, twin daughters of the Smiths, purchased the property in 1953. Over the years, they have sold a limited portion of the Thousand Acres shoreline to individual owners and one small private yacht club. A private paved road provides access to the approximately 100 residences that have been built on this portion of the shoreline. All of the other Smith property has been sold or developed by family members and includes such well-known areas as The Blakeslee, Sandy Beach, The Pinnacle, Pergin Farm, Paradise Point, Penn Cove, Marsh Hill (The Wisp), and the Deep Creek Lake State Park.