Lake Kununurra is a freshwater man-made reservoir located in the Ord River valley.

Prior to the diversion dam construction a natural permanent waterhole (or lake) held back by the Bandicoot Bar was known as "Carlton Reach", which was reputed to be the largest waterhole in the Kimberley.

Because of the stable water levels in Lake Kununurra and its associated wetlands, it has well-developed fringing vegetation of grassland, rushes and woodland.

[2] In 2014 a saltwater crocodile estimated to be 3 metres (10 ft) long was spotted in the lake after bypassing dam walls.

[3][4] The lake forms part of the Ord Irrigation Area Important Bird Area (IBA), so identified by BirdLife International because of its importance for wild birds, especially estrildid finches.