Loon Lake is one of about two dozen clear, clean lakes located in a special wilderness area known as the Sylvania Wilderness, which in turn is located within the Ottawa National Forest a few miles to the west of the town of Watersmeet.

The shoreline is completely undeveloped, and surrounded by virgin timber consisting mainly of hemlock and pine.

The total surface area of the lake is 375 acres (1.5 km2), with maximum depths of 53 feet (16 m).

Like all lakes in the Sylvania Tract, Loon lake has numerous special regulations designed to protect and ensure its wilderness quality for future generations.

These regulations include no motors on watercraft and catch and release for bass.