Grenada Lake is a reservoir on the Yalobusha River in the U.S. state of Mississippi. It is one of four flood control lakes in North Mississippi constructed by the U.S. Army Corps of Engineers. Grenada Lake was constructed to help control flooding along the Yazoo River Basin. The dam is located on the Yalobusha River approximately 3 miles northeast of …Grenada Lake is a reservoir on the Yalobusha River in the U.S. state of Mississippi. It is one of four flood control lakes in North Mississippi constructed by the U.S. Army Corps of Engineers. Grenada Lake was constructed to help control flooding along the Yazoo River Basin. The dam is located on the Yalobusha River approximately 3 miles northeast of Grenada, Mississippi.