This Type Of Eminent Domain happened In Massachusetts
Between 1930-1939 the residents of four Massachusetts towns, Dana, Enfield, Greenwich and Prescott had their real property bought up and were relocated so that a huge dam could be built on the Swift River and the entire valley flooded. Those four towns were disincorporated and vanished beneath the waters.
The result was the man made creation of the largest inland body of water in Massachusetts, the Quabbin Reservoir. The rapid population growth of Boston and surrounding suburbs quickly outstripped local water supplies. Therefore a giant reservoir had to be built.
The residents of those four towns didn't go willingly and indeed, took the case to the Massachusetts Supreme Court, but lost. It was a case of the greater good vs individual rights, but the bitter part was that the four towns were not part of the greater good.
I hope the property owners were sufficiently compensated for their homes, but because it took place in the 1930s when property values were depressed, I doubt it.
Of course, nothing can compensate for the loss of your ancestral homes. I can still drive by the house owned by my grandparents; these people can only look out over the water that covers theirs.