The town sits on the dividing line between Central and Eastern time zones.

It is the site of the Hudson Lake station stop of the South Shore Line.

The South Shore rail line runs along the southern side of the Hudson Lake water body, leading east 15 miles (24 km) to South Bend and west 18 miles (29 km) to Michigan City.

[6] Hudson Lake is served by interurban commuter rail on the South Shore Line.

Trains from Hudson Lake Station run to and from Chicago westward, and to and from nearby South Bend eastward.