Lake Grace is a town in the eastern Wheatbelt region of Western Australia, 345 kilometres (214 mi) from Perth along State Route 107 between Wagin and Ravensthorpe.

In 1914 the government planned to extend the railway network from Kukerin to Lake Grace, and local settlers lobbied for a townsite to be declared at the terminus.

In 1922 the Reverend John Flynn visited the town to assess the suitability for establishing an Australian Inland Mission (AIM) hospital.

The Western Australian Government agreed to subsidise the building of the hospital, which was subsequently built by AIM and opened in April 1926 staffed by two nurses, Olive Bennett and Helen Cousin.

The hospital served an area of 26,000 square kilometres (10,000 sq mi) including providing maternity ward facilities.

Grace had become famous in 1876 when she and the Bussell family's stockman Sam Isaacs rescued many people from the wreck of SS Georgette near the mouth of the Margaret River.

[4] Lake Grace is located on the "cross roads" with it being halfway between Perth and Esperance as well as acting as a main through point for those travelling between Albany and the Wheatbelt.

[5] Recently changes have included the development of the "Multi Art Space", the introduction of a visitor centre in the old station master's house and an improved townscape.

A number of local residents have become award-winning artists including Kerrie Argent, who won the Cottesloe Sculpture by the Sea People's Choice Prize in 2010 for evidence – the trail continues.

Locals played a key role in restoring the AIM hospital, now a museum that displays primary health care prior to 1960.

Travellers' facilities include the local hotel-motel, roadhouse, the Salt Bush Inn motel and the Lake Grace Caravan Park.