Waterloo is a town in Lauderdale County, Alabama, United States. It is part of the Florence - Muscle Shoals Metropolitan Statistical Area known as "The Shoals". As of the 2000 census, the population of the town is 208. The town was incorporated in 1832 on the banks of the Tennessee River. The local high school is Waterloo High School (Alabama). The town is adjacent to the Lauderdale Wildlife Management Area. Two primitive campgrounds managed by the Tennessee Valley Authority are in the city limits. Waterloo is located 11 miles west of the Natchez Trace Parkway. The town and surrounding area is served by Waterloo High School (Alabama). The town and surrounding area is served by the Waterloo Volunteer Fire Department.