Several small islands lie in the entrance to Middle Fiord, which forks partway along its length into northwest and southwest arms.

Most of the lake is within Fiordland National Park and the Te Wahipounamu World Heritage Site, the latter of which was officially recognised internationally in 1990.

[citation needed] Lake Te Anau was important for the Ngāi Tahu iwi[a] in pre-European times as the area was a traditional stopping point on their trails between the east and west coasts of the South Island of New Zealand, where they obtained food and resources.

It was supposed by many that Te Anau was the name of the granddaughter of Hekeia, a chief of the Waitaha tribe, whose name now belongs to a mountain on the Longwood Range.

[8] Several species of endangered birds live around the shores of Lake Te Anau, notably the takahē (Notornis hochstetteri).

An area between the Middle and South Fiords called the Murchison Mountains is a sanctuary set aside for these birds.