Looks like a "green hole" to me, let's go!!
Most swimming holes aren't going to have caves in them, they're just deep spots in the creek bed that pond water.
56 degree water discourages much swimming beyond jumping in and jumping right back out.
Here is a better URL and directions http://www.swimmingholes.org/tn.html#BOWATER%20HOLE
Does the surrounding bedrock look like limestone to you?
I've been a lurker for a good while and this thread pic'd my interest. I live in Soddy Daisy and my daughter and her friends swim the Blue Hole often. It's about 15 minutes from my house. I may have to go with her the next time and take my snorkel (finally may have a use for it) and mask to check it out. Dunlap is about 25-35 minutes away from Soddy if you take Hwy 111 over the mountain. I know of 3 caves locally. I have been in 2 of them (Not diving and went as far as available until water prevented further penetration.) One is in Sequatchie Valley in Marion County, another on the outskirts of Jasper in Marion County, and the last is a small hole that is at the foot of Monteagle mountain in the Fiery Gizzard Cove. I have zero knowledge if they are divable as these were part of my amatuer, untrained spelunking when I was younger and indestructable. I can't even verify at this time that they are still accesible. If I ever get off my lazy and cheap butt to get cave certified, I may check them out again.
Had HS friends who used to visit them but never got there myself. I went to Central a long long time ago. If you get trained I might be up for a trip. My mom still has a house up there to stay in if i visit although most of the time she is with my sister in GA.
Also know where there is cold water flowing in the bottom of one of the creeks that runs in the lake. I could feel it coming in when I used to ski there if I fell near it. I suspect it used to feed the creek.
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