The lake was constructed for the purpose of supplying tap water to the residents of Carbondale.

In addition, the lake serves fishing, swimming, and active recreation purposes.

[1] In addition to water supply purposes, Cedar Lake is managed for bass (largemouth and striped) and crappie fishing.

The lake was described in 2007 as receiving "moderate to heavy" fishing pressure from the recreationally active people of southern Illinois and southeast Missouri.

[2] The city of Carbondale operates a parking lot, swimming beach, and boat dock at Cedar Lake.