Lake Hamilton Fire Chief Doug Davey tells KATV they were called to the boat fire at approximately 11:10 a.m. Friday in the cove by Kahuna Bay, in the 4900 block of Central Avenue.
When firefighters arrived, the boat fire was fully involved and they worked to extinguish the flames.
Divers were called in to help recover the vessel, which was in about 10 feet of water and began to spill oil into the lake. Chief Davey says 20 containment booms were put out to help with the oil spill.
The Garland County Environmental Quality Department and Arkansas Game and Fish were on site to help monitor the spill.
The fire marshal was on scene and waiting for the boat to be recovered to determine what exactly caused the fire.