I can tell you about Douglas and Cherokee, not sure about Watts though.
Cherokee is a nice fishing lake. Thats where I grew up fishing all of the time, its pretty big but gets low during the winter. Swimming there is so so same for skiing. I also live maybe 15 mintues from there
Douglas is a better IMO, Cherokee and Douglas seem like they connect but they dont really. They are really close together so you could get to one or the other in 5 mintues if you lived in that area.
We have another nice lake up this way called Watagua Lake, beautiful building spots here (15 min from where I live again).
Do you like North East TN? I personally love it here, but its a diffrent world than Chicago so I would probably visit first before you decided to come down here and live.