Bonito Lake is believed to be haunted by the spirits of victims of a mass murder that occurred in the town of Bonito City, which now lies beneath the lake. Legend says the ghost of Martin Nelson, the murderer, and other victims, such as the Mayberry family, linger in the area, causing disembodied voices, a face floating underwater, or a man in period clothing wandering the shores. In 1885, Bonito City was a bustling Wild West town that met a grim end. Martin Nelson, a local man, committed a brutal massacre, killing the Mayberry family and several others, including Peter Nelson, the owner of the saloon. After the massacre, Nelson's body was said to be buried head-first, but his spirit, along with the spirits of his victims, is said to still haunt the area. Witnesses have reported seeing a man in period clothing on the shores, his face floating underwater, and disembodied voices and giggling when the shores and water are empty.