[1] Located north of Ucluelet on the island's central west coast, the lake is formed chiefly by the confluence of the Clayoquot and Kennedy Rivers.

Outflow is via a short stretch of the Kennedy River into Tofino Inlet.

The lake and surrounding region's natural beauty has led to portions of it being protected from the logging industry.

It is an important spawning habitat for sockeye and various species of salmon and trout, and lies within the Coastal Western Hemlock Biogeoclimatic Zone.

The lake is part of the ancestral lands of the Tla-o-qui-aht First Nations, and is named for the last governor of the Colony of Vancouver Island, Sir Arthur Kennedy.