Smallwood is a hamlet in Sullivan County, New York, United States. The population was 566 at the 2000 census. Smallwood is in the southeast part of the Town of Bethel. It is a hamlet within the town of Bethel, originally founded as the vacation community "Mountain Lakes," but later renamed after its founder A.N. Smallwood. Smallwood is known for its "vintage" style log cabins and camps constructed by Eastern European immigrants in the 1940s. It was originally "restricted" i.e. homes were available to white Christians only. This changed in the 1950s. Many of these seasonal cabins still have their original log siding and limestone fireplaces built by immigrant masons. Running water for most Smallwood homes is only available on a seasonal basis from April to October. Other homes which have been winterized have wells. Smallwood residents also have access to a brook, White Lake Brook, located in the center of the community, which has a beach, that was gated and privatized in the late 90's, limiting access for residents.