Abstract
Reservoir recreation affects the economy of the local area in which the reservoir is located. Expenditures by recreation visitors represent exports of goods and services by the public and private enterprises catering to their demands. Availability of a comprehensive survey of expenditures made by visitors to Norris Lake made it possible to estimate the impact on both personal income and employment in the three-county area in which the bulk of Norris shoreline is located. Economic base theory is used to estimate induced income and employment multipliers and thereby to estimate the secondary economic impact of recreation expenditures. Although Norris is one of the most popular Tennessee Valley Authority reservoirs, it was found that recreation's contribution to the local economy had been negligible, especially when compared to either the positive effect of manufacturing or the negative effect of the agricultural decline.

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