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The site is extremely prone to muddy conditions. Those who frequent the Towpath are no doubt familiar with the spectrum of bathroom quality along the way. Horseshoe Bend is at the low end of that spectrum. Otherwise, it's pretty standard rustic campsite with a picnic table and a view of the river.
Water is available mid-spring through mid-fall; see the NPS website for C&O Canal National Park for specifics on water.