The Whitewater controversy (also called the Whitewater scandal, Whitewatergate, or often simply Whitewater) was an American political controversy concerning the real estate dealings of Bill and Hillary Clinton and their associates, James B. McDougal and Susan McDougal in the Whitewater Development Corporation, a failed business venture in the 1970s and 1980s.
David Hale, the source of criminal allegations against President Clinton in the Whitewater affair, claimed in November 1993 that Clinton, while governor of Arkansas, pressured him to provide an illegal $300,000 loan to Susan McDougal, the partner of the Clintons in the Whitewater land deal.
A U.S. Securities and Exchange Commission investigation resulted in criminal charges against the two principals in the Whitewater project, but the Clintons themselves were never charged. Three separate inquiries found that there was insufficient evidence to charge the Clintons with criminal conduct in the land deal.