[1] It is the larger of a pair of existing lakes—the other being Lake Waipori—which lie in a small area of low hills between the Taieri and Tokomairaro.

This shallowness is reflected in the name Waihola, the southern Māori form of the word waihora, which means "spreading waters".

Ships used to travel up the Taieri River and across to the southern side of the lake where prospectors would traverse the hills and on to Gabriel's Gully.

Lake Waihola has attracted international interest due to the ecosystems based in a shallow freshwater tidal system.

Waihola is reputedly the home to a species of otter, the cryptid waitoreke, but no verified sightings have ever confirmed the animal's existence.