Similarly to the name of Lake Nicaragua, its other name comes from the Nahuatl language, possibly from the Spanish Tlaxcaltec and Mexica allies but most likely from the Nicarao tribes that had already settled in the region.

[2] The lake rose 3 metres (10 ft) in five days during Hurricane Mitch in 1998, destroying the homes of many who lived on its edge.

[2] Since then, the city has prohibited residential use of the most flood-prone areas, those with the elevation below 42.76 meters above sea level.

[4] Despite the pollution, some of the people of Managua still live along the lake's shores and eat the fish from it.

A stone rip-rap and concrete wharf was constructed, and a sightseeing boat called La Novia de Xolotlán makes hour-long lake tours when there are sufficient tourists.