This lake belongs to a group of remote Andean lakes that formed during the Tertiary. These lakes lie at elevations of and are characterized by extreme environmental conditions, including high amounts of heavy metals such as arsenic, high salinity, high UV radiation, high daily temperature fluctuations and low availability of nutrients. The UV radiation is especially problematic for lifeforms inhabiting the lakes and acts as a mutagen, damaging cellular DNA. Lakes in the neighbourhood of Laguna Vilama include Laguna Coruto to the northwest across the border with Bolivia and Laguna Palar to the southeast.