Devils Lake, a terminal lake in northeast North Dakota (USA), has experienced catastrophic flooding since 1993. From January 31, 1993, to December 31, 2014, lake level rose from 433.62 to 442.44 m, lake area expanded from 179.9 to 653.5 km², and lake volume increased from 0.70 to 3.80 km³. More than $1 billion ($USD) has been spent in government payments to mitigate direct, primary, tangible flood damages. This paper provides a case study of the hydrological basis of the Devils Lake flood disaster. The unique geomorphic setting, paleoclimatic record, and hydroclimatic conditions of the region are summarized, and a wide range of hydroclimatic data is examined to provide a broad understanding of the physical basis of the flood disaster. The primary cause of the disaster was a transition to a sustained wetter climate that resulted in a dramatic response in basin hydrological variables in 1993. The transition from a long-term dry period to a long-term wet period caused the lake water budget to begin to change from an atmosphere-controlled water budget dominated by precipitation input to an amplifier lake water budget dominated by surface runoff input to the lake. Other important hydrological factors include a nonlinear precipitation–runoff relationship following the long-term drought, fill-spill and fill-merge hydrological behavior that is characteristic of wetland complexes, an increase in the lake area-to-basin area ratio, and the critical role of frozen soils in controlling infiltration and runoff production of spring snowmelt. Engineering works to manage lake volume through two outlets have reduced, but not entirely eliminated, future flood risk.