[2] The lake was created for irrigation and recreation in 1967 by a dam located at its south end.

The lake is part of a greater irrigation and aqueduct system built in the 1960s in Saskatchewan and was named after Indi, an unincorporated railway point nearby on the Canadian National Railway (CNR).

Indi Lake is part of the Blackstrap Coulee (SK 078) Important Bird Area (IBA) of Canada.

The Blackstrap North Dam (with a height of 10.4 m (34 ft) and length of 1,370 m (4,490 ft)) is operated by Saskatchewan Water Security Agency and was constructed in 1967; the dam stores water to supply the village of Thode, the Nutrien Allan potash mine (via the Bradwell Reservoir) and the Mosaic Colonsay potash mine (via the Zelma Reservoir).

The dams at Indi and Blackstrap lake and the channel that brings water from Indi to Blackstrap Lake are part of a much larger system that brings water from the South Saskatchewan River through a series of aqueducts to the area.