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is a town in Anderson and Campbell counties in the eastern part of the U.S. state of Tennessee, northwest of Knoxville. The population was 1,888 at the 2000 census. Most of the community is in Anderson County, which is included in the Knoxville Metropolitan Statistical Area.
The town was originally known as Coal Creek, which is still the name of the stream that runs through the town. Coal Creek and the nearby town of Briceville were the site of a major lockout of coal miners in 1891, which resulted in the town of Coal Creek being occupied by the state militia for over a year after miners attempted to force an end to the use of unpaid convict labor in the mines. This labor struggle, known as the Coal Creek War, was eventually resolved in the coal miners' favor with the abolition of Tennessee's convict labor program.
The Fraterville Mine disaster of 1902 occurred nearby, in the village of Fraterville.
Norris Dam is nearby. The town's current name was adopted in 1936 after the completion of Norris Dam formed an artificial lake above the dam.
Lake City is located at (36.224234, -84.155902). It is the northern terminus of U.S. Route 441.
According to the United States Census Bureau, the town has a total area of 1.6 square miles (4.1 km²), all land.