Lake-Town

Lake-Town was a town with dwarves that was built on the surface of a lake. The houses were built of wood. Lake-Town was a striving town with wealth and power but over time the town got smaller and started to die. Then lots of dwarves flocked to Lake-Town after Smaug took over Erebor. The men in Lake-Town were delighted to have more people in Lake-Town and greeted the dwarves generously. They housed and clothed the dwarves. When the dwarves left to go free their mountain, the Lake-men gave them boats and ponies. Several weeks later Smaug emerged from the mountain and descended and Lake-Town. In the battle Bard shot and killed Smaug with the Black Arrow. Smaug let out a scream and fell from the sky on Lake-Town, destroying it completely.

Source: "Cities & Towns" http://www.tuckborough.net/towns.html#Lake-town