The big celebration at Lake Tahoe is Lights on the Lake, the largest synchronized fireworks display in the western United States. It goes off over the lake every 4th of July. They're launched barges just off the South Shore at Stateline. One the best ways to see the show is from a boat.
Incline Village also has its own Independence celebrations, with a parade, fireworks and duck races - featuring a very cute bunch of rubber duckies floating down the stream toward the lake. It's all called the Red, White and Blue Tahoe Festival and you can find out more at their website.
In a rare year with lots of late snow, you might have a hard time deciding whether to pack the water skis or the snow skis for Tahoe on the Fourth. In those rare years, you be able to ski on July 4 at some of the area's bigger, higher-elevated resorts like Squaw Valley.
