Lugu Lake is neither in Dali nor Lijiang, but is located on the border between Yanyuan County in Sichuan Province and Ninglang County in Yunnan Province.

Lugu Lake is a plateau fault erosion trap lake, belonging to the upper reaches of the Yangtze River trunk Jinsha River tributary of the Yalong River tributary Litang River water system, for the upper source of the Xiaojin River, which flows through the Yalong River to the Jinsha River.

The Lugu Lake basin area is situated in the Yongning Basin, the third largest deep-water lake in China, with a small island in the lake. Around Lugu Lake mainly inhabits Mosuo, Yi and Pumi ethnic groups, and seven ethnic groups of Mongolians, about 13,000 people, live along the shore. The beautiful natural environment and peculiar ethnic customs make this place a famous tourist attraction.

Lugu Lake Scenic Spot Honors

Lugu Lake has won the "China's top ten best ecological and cultural tourism scenic spots", "China's top ten most beautiful lakes", "China's Top Ten Famous Ecological Lakes", "My Favorite Yunnan Tourist Attractions" and other honorary titles.

In November 2018, it was selected as the "2018 Best Leisure Travel Destination of China National Tourism".

In December 2018, it was selected as "2018 Charming Chinese City" Cultural Tourism Charm List".

In May 2020, it was selected as "2020 China's Top 100 Summer Vacation Recreation Gold Landmark List".?

In November 2020, it was assessed as a municipal-level beautiful river and lake.