The legends of Ngāi Tahu tell of Motuariki, who was an ancestor of the Āraiteuru waka that capsized near Shag Point on the Otago coastline.

The average water temperature on the surface of the lake varies between a low of 5.8 to 5.9 °C in September and a high of 17 °C in January.

On a clear day, the taller snow-capped peaks of Aoraki / Mount Cook National Park are visible from Lake Tekapo.

An astronomical observatory is located at Mount John, which is to the north of the town, and south of the small Lake Alexandrina.

[10] Lake Tekapo and the surrounding district were designated in 2012 as the Aoraki Mackenzie International Dark Sky Reserve.

[14][15][16] Lake Tekapo and its observatories are a popular destination among astronomers, astrophotographers and tourists interested in star-gazing.

[17][18][19] Lake Tekapo is also known for its stunning seasonal display of Lupin that bloom along its shores from around Mid November until the end of December.

In 1938, construction commenced on a power station, originally due to be finished in 1943 but halted in 1942 by the Second World War.

With development of the Upper Waitaki hydroelectric scheme in the 1970s, water is now fed into a 26 km (16 mi) canal which leads to Tekapo B Power Station on the shores of Lake Pukaki.

[28] In February 2021, Genesis Energy finished an upgrade that strengthened the Tekapo A power station to withstand earthquakes.

[29] On the north side of the lake, 24 km (15 mi) from the Tekapo township is the Roundhill Ski Area situated in the Two Thumb Range, which caters primarily to beginner and intermediate skiers.

For advanced skiers, Roundhill Ski Area also has the world's longest and steepest rope tow which runs to the top of the Richmond Range at 2,133 m (6,998 ft) elevation.

The church is one of the most photographed in New Zealand, and features an altar window that frames views of the lake and mountains.

[32] Close to the Church of the Good Shepherd is a well-known bronze statue of a New Zealand Collie sheepdog.