The lake is located in the Newer Volcanics Province, a geologically-defined area of western Victoria with the youngest volcanoes in Australia, not far west of the Budj Bim (Mt Eccles) volcano. It lies just outside the boundary of Budj Bim National Park, but within the Budj Bim heritage areas, including the Budj Bim Cultural Landscape, added to the World Heritage List in 2019. The area is known for the extensive aquaculture systems created by the local Gunditjmara people.