Beavers live near rivers, streams, ponds, small lakes, and marshes. They build lodges of sticks and mud on islands, on pond banks, or on lake shores. Beaver dams are domed-shaped and can be up to ten feet tall. Beaver lodges have one large central chamber and one or two entrances.Habitat. All beavers need water to survive. They live in or around freshwater ponds, lakes, rivers, marshes and swamps. American beavers live throughout North America, but stay clear of deserts and the far northern areas of Canada.