The city of Lake Town was founded by the survivors of the Sack of Dale and Erebor by the dragon Smaug that happened 248 years before the start of the War of the Ring. The city was built with the wealth of trade between the Men of Dale, the Elves of Mirkwood, and the Dwarves of Erebor and the Iron Hills. Lake-town utilized water as its defense. The Long Lake was also surrounded by towering cliffs and high mountains, all helpful natural barriers that had the potential to aid its defenders in a siege. After Smaug destroyed Lake Town's wooden buildings, the city was moved down the Long Lake and became known as Esgaroth. Smaug's enormous corpse now lies at the bottom of the Long Lake.