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Lake Wawayonda is a resort area located in the Appalachian Mountains seven hours from Rustvale, where Frank and Sue used to go when they were first married and where the family visits again in "Summer Vacation". Its name derives from the Manahobi language; after that tribe was slaughtered by white settlers it became Lake Smith, but reverted to Lake Wawayonda following activism by the tribe's descendants many years later.

Attractions include a motel, the Wawayonda Inn, where a two-year-old Kevin nearly drowned after his stroller rolled into the swimming pool; Arnie Carny's Amusement Park; and the "murder cabin" where, on July 7, 1926, the 15-member Van de Camp family was murdered by a drifter, and which is where the Murphys stay in the episode. The lake, at least outside the cabin, is polluted with toxic waste and coated with flammable black gunk, and so swimming, boating and fishing are prohibited until 1983 (not that it stops Maureen from trying to swim in it).

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