The lake, which drains into the Sevier River is located on the Markagunt Plateau, between Panguitch, Utah and Cedar Breaks National Monument.

Convenience stores and a Latter-day Saint chapel are within walking distance of the campgrounds, and the roads are well paved and maintained.

Panguitch Lake was treated with rotenone beginning May 1, 2006 to potentially eradicate and control the invasive population of Utah chub, which were probably introduced accidentally by anglers who used them as live bait.

The National Weather Service issued a flash flood watch beneath the dam as a precautionary measure.

[3] By April 12th, preemptive evacuation notices were relaxed as officials felt the condition at the dam was improving.