terminals. The houses immediately behind are in Carter Lake, Iowa (with the lake visible to the right). The bluffs are in Omaha. Carter Lake is the only city in Iowa located west of the Missouri River. This is due to a flood that occurred in March of 1877, which redirected the course of the river 2km (1.25mi) to the southeast. The remnants of the old river course became an oxbow-shaped lake, for which the town was named. After extensive litigation between Iowa and Nebraska, in 1892 the United States Supreme Court finally ruled that Carter Lake belonged to Iowa (145 U.S. 519). Legally considered part of Council Bluffs, residents lacked the basic city services enjoyed by residents east of the Missouri but were still subject to city taxes. The community successfully seceded in the 1920's, intending to become part of Omaha, but the Nebraska city didn't want to pay to extend sewers or water lines either and in 1930 Carter Lake was incorporated as its own municipality. During the late 1930's and 1940's the Chez Paree nightclub and casino operated openly and quite illegally, as Carter Lake gained the reputation as the biggest gambling spot between Chicago and Reno. Carter Lake creates a geographic oddity for travelers going to Eppley Airfield which it surrounds on the south and west. Consequently travelers going from downtown Omaha must go through Iowa in order to reach the airport. Conversely, travelers from the mainland of Iowa must cross Missouri River bridges into Nebraska in order to reach the airport. Travelers coming from the north can reach the airport by staying in Nebraska the entire time. Iowa Highway 165 which passes through Carter Lake is 0.5 miles long and is maintained by the Iowa Department of Transportation and has Iowa welcome signs on either side. Nebraska does not return the favor since 165 turns into Abbott Drive on both sides which is an Omaha municipal road. Source: http://en.wikipedia.org/wiki/Carter_Lake%2C_Iowa

A local junior high student did his Iowa History Day project on this question. http://www.carterlake.org/history/