The lake is of glacial origin and occupies a narrow east to west valley between glaciated peaks of the Andes.

From its source, it flows eastward about 30 kilometres (19 mi) to enter the upper end of Lake Cholila.

The highest mountain in Chubut Province is Tres Picos, 2,515 metres (8,251 ft), about 10 kilometres (6.2 mi) west northwest of Lake Cholila.

Cattle raising, tourism, and sport fishing are the principal occupations of the sparsely populated region.

For several months in 1905, the outlaws Butch Cassidy and the Sundance Kid may have hidden from Pinkerton detectives in a cabin where the Tigre River joins Lake Cholila.