The Kodai Lake is an artificial lake which has been constructed in the shape of a star. The lake was constructed in the year 1863 and is the most popular tourist spot of Kodaikanal. The lake is at a distance of half a kilometre from the bus stand. The lake is spread across 60 acres. There is a Boat Club close to the lake which rents out rowboats and pedalos.
One can also hire horses and bicycles and take a ride around the area. There is a path of 5 km on the periphery of the lake which is good for walks. This path is popular among locals as much as among the tourists. The lake is a good place to have a relaxing time in the centre of the town.