A short channel at its north end connects it with  Lake Winnipesaukee in the village of Weirs Beach, and a dam on its southern end separates it from Opechee Bay in the village of Lakeport. The bay is named after Chief Paugus, who fought in the Battle of Pequawket during Dummer's War.
At its northern end, there is a narrow channel that connects it to Lake Winnipesaukee near Weirs Beach village; while on its southern side, a dam separates it from Opechee Bay adjacent to Lakeport village. The bay is named after Chief Paugus, who fought in the Battle of Pequawket during Dummer's War.