Outflow from the lake at its southwest corner is regulated for irrigation purposes by a small dam completed in 1943.

The area became more accessible in 1914 when a railroad and roads were extended to McCall, which was becoming a tourist destination for summer and winter recreation.

In 1920, the Idaho State Land Board began leasing vacation homesites around Payette Lake.

Increasing recreational demands led to the establishment of Brundage Mountain Ski Area and Ponderosa State Park, both near McCall, in the 1960s.

[4] In Idaho folklore, a sea serpent much like the Loch Ness Monster is said to live in the deep waters of Payette Lake; in 1954, the creature was given the name Sharlie.