The lake is considered sacred and is named after Machinder Nath or Matasya Avtar of Lord Vishnu literally 'The Fish God'.

Yogi Machinder Nath learnt the Science of Shabar Mantra from The Sun, and teaches the same to his disciple Guru Gorakhnath.

A comparatively larger and wider stream is one kilometre eastwards of the lake near Uhl stage 3 project site that remains crowded with Himalayan Golden Mahseer.

Around 2000's, due to presence of some poisonous substances discharged into the river Ranna Khadd, hundreds of fish died in and around the Machhial Lake.

Showing divine respect toward the god, devotees buried all the dead fish in nearby land and criticized the incident with anger and resentment.