Quietly nestled in the southeast corner of Pawnee County, Iron Horse Trail Lake is an 85-acre lake situated within the 360-acre recreation area named for the historic railroad trail which winds through the park's wilderness. The dam was completed in 1983 as an important flood control component of the South Fork Watershed. In 1985, the recreation facilities were opened to the general public.

Iron Horse Trail Lake offers camping, picnicking, fishing, swimming, boating, hiking, and limited trapping (by permission only) and hunting. Areas have been designated for tent camping, and camping pads are available for recreational vehicles. Drinking water is available, not no electrical hookups are provided. In addition a picnic shelter and tables, restrooms, charcoal grills, playground equipment, sand beach and swimming area, beach volleyball court, and nature trails are all features of Iron Horse Trail Lake. A boat ramp and dock as well as a boat tie-up area are provided with parking areas for boat trailers.

The lake has been stocked with walleye, channel catfish, smallmouth bass, sunfish, and rock bass. Recreational boating and water-skiing are permitted as well as such winter activities as sledding, ice skating, cross country skiing, and ice fishing.

Dubois and Pawnee City offer doctors, dentist, hospital, several churches, groceries, fuel, and restaurants. A golf course, tennis courts, swimming pool, ball park, public parks, public library, and fairgrounds are also available.