Arkabutla Lake is a reservoir on the Coldwater River in the U.S. state of Mississippi. It was created following the construction of the Arkabutla Dam in 1940 on the Coldwater River. The dam is located on Arkabutla Dam Rd approximately 4 miles north of the small community of Arkabutla. It is one of four Flood Damage Reduction reservoirs in northern Mississippi, th…Arkabutla Lake is a reservoir on the Coldwater River in the U.S. state of Mississippi. It was created following the construction of the Arkabutla Dam in 1940 on the Coldwater River. The dam is located on Arkabutla Dam Rd approximately 4 miles north of the small community of Arkabutla. It is one of four Flood Damage Reduction reservoirs in northern Mississippi, the others being Sardis, Enid and Grenada lakes.