Public access to the lake by boat ramps are on the northwest, southwest and East Balsam.

It is fed by natural springs and seepage from wetlands on the southwestern, northeastern and eastern shores.

Balsam Lake is well known for its great fishing for panfish (bluegill, sunfish, crappie, yellow perch, and bullhead) and sport fish such as largemouth bass, walleye, and northern pike.

Other recreational activities such as boating, canoeing, swimming and water-skiing in summer and ice fishing, snowmobiling, and cross-country skiing and the 17.8 mi (29 km) Cattail State Trail.

Over fifty businesses line the shore of the lake, including resorts, motels, bait and tackle shops, grocery stores, restaurants, insurance offices, chiropractic, hardware, gas stations, taverns and more The original plat records the Ojibwe Indian name of this place as Innenehinduc.