LOOKOUT MOUNTAIN — The Georgia Department of Natural Resources imposed a three-year building moratorium and a $111,875 fine on McLemore Resort in May 2026 due to violations related to its sewer system. The McLemore Water Reclamation Facility, which serves the resort, residential community, and amenities on Lookout Mountain in Dade County, Georgia, exceeded permitted flow limits.

The facility operates under NPDES Permit No. WPCP-E-08-0008, with a permitted monthly average daily flow limit of 34,000 gallons per day and a weekly average of 43,000 gallons per day. Best estimates show the residential community alone exceeded the monthly average daily flow limit on six separate days, while the hotel exceeded it on five days when considered in isolation.

The Board of McLemore Sewer, Inc. stated: "When we took control of the sewer, the limitations of the existing sewer plant became one of our top priorities as we planned for the future. To bring the sewer system into compliance, the sewer board executed a Phase 1 plan that was permitted and completed. However, due to the continued growth of McLemore Resort, the need for an additional plant capacity became apparent to the board. They quickly moved to pursue permitting for a Phase 2 expansion that was received in December 2025."

The Board added: "Georgia EPD has stated that funds spent on the Phase 2 expansion will be used to offset the penalty of $111,875. Georgia EPD is in active discussions with the sewer board and will consider on a case-by-case basis construction of new housing in the interim. They indicated that when construction on Phase 2 commences; or, when other interim mitigating steps are taken, the moratorium may be lifted."