The McLemore resort community on Lookout Mountain is facing a development moratorium of up to three years and a $111,875 penalty following action by the Georgia Environmental Protection Division related to wastewater treatment system compliance issues.
The restrictions stem from concerns involving the capacity and operation of the McLemore Water Reclamation Facility, which serves the resort, residential community, and associated amenities in Dade County.
According to information released by McLemore Sewer, Inc., the treatment facility was originally designed to serve a smaller community and has experienced increasing demand as residential development and resort operations have expanded. The opening of the resort hotel in 2024 added additional wastewater flow to the system, although company officials maintain that broader community growth, aging infrastructure, and stormwater infiltration have all contributed to the facility’s challenges.
Members of the homeowners association have expressed concerns about long-standing issues with the sewer system and contend the situation worsened following the hotel’s opening.
Under the proposed consent order issued by the state, new development connections are suspended until the facility demonstrates compliance and adequate treatment capacity. State regulators are reportedly considering requests for new construction on a case-by-case basis while improvements are underway.
McLemore Sewer officials said they have already completed an initial phase of upgrades and received permitting approval for a second phase expansion in December 2025. The expansion is designed to increase treatment capacity and accommodate future growth. Officials also noted that money spent on the expansion project is expected to offset the state-imposed penalty.
Additional improvements include repairs aimed at reducing groundwater and stormwater infiltration into the sewer system, removal of the hotel’s swimming pool discharge from the wastewater system, installation of a new oxygen treatment system, and continued coordination with state regulators on long-term solutions.
McLemore Sewer, Inc. said it remains in active discussions with the Georgia Environmental Protection Division regarding compliance requirements and potential conditions that could allow the moratorium to be lifted before its maximum duration. State officials have indicated the moratorium could be reconsidered once construction on the approved expansion begins or other mitigation measures are implemented.
Despite the wastewater challenges, resort officials reported that business operations remain strong, with the hotel reaching full occupancy during the previous week.