I found this information online explaining that this lake and one of the neighborhoods was created when Asheville as a town was smaller and a bit further away than it is now.
Years ago this lake was a meadow called Baird Bottom and the trolley tracks, what have been left of them, are hidden under three to four feet of water. Created in 1923 by landscape architect John Nolen (June 14, 1869 - February 18, 1937), historic Beaver Lake and the adjoining property are privately owned and maintained by the residents of Lake View Park. The park and lake is enjoyed by both Lake View Park residents and guests for activities such as jogging, running, walking, biking, bird watching, watching the sun set, picnicking, boating, and fishing.
The park still exists and is used by local residents. The falls turned out to be a deep drop where the excess water from the lake runs off. As you can see, the stream bed shows the extensive damage along it's walls from the hurricanes and flooding that hit the area in 2004.