DeGray Lake is a reservoir on the Caddo River constructed by the United States Army Corps of Engineers in Arkansas, 8 miles from Arkadelphia. Arkansas Scenic Byway 7 is located on the eastern shore of the lake, and provides views of the lake, and also places to stay. DeGray Lake Resort State Park was opened in 1974 to encourage tourism and recreation …DeGray Lake is a reservoir on the Caddo River constructed by the United States Army Corps of Engineers in Arkansas, 8 miles from Arkadelphia. Arkansas Scenic Byway 7 is located on the eastern shore of the lake, and provides views of the lake, and also places to stay. DeGray Lake Resort State Park was opened in 1974 to encourage tourism and recreation on DeGray Lake.