Lake Traverse is an 11,200-acre (4,500 ha) lake along the border between the U.S. states of Minnesota and South Dakota, and is the southernmost body of water in the Hudson Bay watershed of North America.

A U.S. Army Corps of Engineers dam at the outflow regulates the lake's level.

The Traverse Gap, a low continental divide and part of the Laurentian Divide, separates the south end of Lake Traverse from Big Stone Lake.

The town of Browns Valley, Minnesota lies within the gap between the two lakes.

In case of flooding of the Little Minnesota River, its waters can pass through culverts within the dike, and across the divide into Lake Traverse.