Lake Royale was formerly part of the Seven Paths farming community. In 1970, members of the American Realty Corporation started to purchase land. The land along the banks of Cypress Creek was cleared, a dam constructed, and thus the beginning of Lake Sagamore. In 1972, American Realty built the lodge and started selling lots on the west side. In 1977, Lake Sagamore was purchased by the National American Corporation (NACO) and the name was changed to Lake Royale. The back nine holes of the golf course were opened for play in 1987, while the front nine were completed in the spring of 1990. Growing rapidly, the Property Owners Association (POA) built their administration building at the entrance to the lake shortly thereafter.