It was created by the erection of Granby Dam, completed in 1950, as part of the Bureau of Reclamation's Colorado-Big Thompson Project.

The Bureau of Reclamation owns Farr Pump plant while Northern Water operates it.

On its own, Lake Granby contains approximately 40 miles (64 km) of shoreline.

[1] The lake is popular with anglers and is continually stocked with rainbow trout and kokanee salmon.

At 8,280 feet (2,520 m), LGYC is one of the highest-elevation yacht clubs in the world,[4] slightly beating out Grand Lake Yacht Club on nearby Grand Lake.