On July 23, 1998, about 1230 Alaska daylight time, a turbine powered, amphibious float equipped Cessna 206G airplane, N121W, sustained substantial damage during an aborted takeoff from a remote lake, about 49 miles east of Yakutat, Alaska. The airplane was being operated as a visual flight rules (VFR) cross-country personal flight, when the accident occurred. The airplane was operated by the pilot. The certificated airline transport pilot, and one passenger were not injured. A second passenger received minor injuries. Visual meteorological conditions prevailed. During a telephone conversation with the National Transportation Safety Board (NTSB) investigator-in-charge (IIC), on July 24, 1998, at 0950, the pilot reported the small lake he was using for departure, had an open area of water that was about 1,800 to 2,000 feet long, and about 200 feet wide. Several small fingers extended out from the main area of the lake. The pilot said he began a step taxi from one finger of the lake into the main area of the lake to gain momentum for departure. The wind was coming from the right rear of the airplane. During a right step turn to begin the takeoff run, the airplane encountered a headwind. The airplane lifted off the water prematurely, and climbed to about 10 feet. The pilot decided to abort the takeoff, and forced the airplane back onto the surface of the lake. The pilot said there was not enough remaining lake area to complete a turn, and the airplane collided with the shore. The airplane received damage to the floats, the main gear attach points, the wings, and the propeller.