The lake is within the boundary of the Fiordland National Park, and is surrounded by native bush.

[1] The first Europeans to explore the valley were David McKellar and George Gunn in 1861, two runholders from Southland.

[1] William H. Homer (after whom the Homer Tunnel is named) and George Barber explored the area in search of a route from Lake Wakatipu to Milford Sound in 1889, setting off from Glenorchy and travelling via the Greenstone Valley.

Homer suggested that a tunnel through the saddle would provide access to the Milford area.

The Homer Tunnel opened to traffic in 1953, giving visitors reason to drive past Lake Fergus.