Starting in 1960, the present day area of the Recreation Area was acquired for the Army Corps of Engineers through eminent domain. Approximately 15,000 people were displaced by the condemnation of personal property along the Delaware River and the surrounding area through eminent domain. An estimated 3,000 to 5,000 dwellings and outbuildings were demolished in preparation for the dam project and subsequent flooding of the valley. This included many irreplaceable historical sites and structures connected with the valley's colonial and Native American heritage. The plan was embroiled in controversy and protest by environmental groups and embittered displaced residents. Because of considerable opposition from environmental activists, the unavailability of government funding, and a geological assessment of the dam's safety given its location near active fault lines, the federal government transferred the property to the National Park Service in 1978 and the project's land holdings were reorganized to create the Delaware Water Gap National Recreation Area.