I think I am going to have to come out some time and have a look at this pond/lake get a better mental image. : ) Did they put the clay etc. in the way they did with the intention of building a lake as part of a re-claimation deal?

Well if there is still about 4 feet+ of bank left then you might be safe at least trying to go up 2+ feet but you should plan for some sort of overflow tube/spillway to be safe.

Owner/Builder of Ottawa Canada's first official off-grid home.

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